Mayfield Development Corporation Pty Ltd v NSW Port Operations Hold Co Pty Ltd [2026] HCA 12 (6 May 2026)
Last Updated: 6 May 2026
HIGH COURT OF AUSTRALIA
GAGELER CJ,
GORDON,
EDELMAN, GLEESON AND BEECH‑JONES JJ
MAYFIELD DEVELOPMENT CORPORATION
PTY LTD APPELLANT
AND
NSW PORT OPERATIONS HOLD CO PTY LTD
& ORS RESPONDENTS
Mayfield Development Corporation Pty Ltd v NSW Port
Operations Hold Co Pty Ltd
[2026] HCA 12
Date of Hearing: 4 December 2025
Date of Judgment: 6 May
2026
S122/2025
ORDER
- Appeal
allowed with costs.
- Cross-appeals
dismissed with costs.
- The
orders made by the Full Court of the Federal Court of Australia on 3 April 2025
be set aside and, in their place, it be ordered
that:
- The
appeal be allowed.
- The
orders made by the Federal Court of Australia on 3 June 2024 be set
aside.
- In
relation to the answer to question (b) of the separate questions, the orders
made by the Federal Court of Australia on 22 May 2024
be set aside and, in its
place, the answer to question (b) be "No".
- The
respondents pay the appellant's costs of the hearing of the separate questions
and the appeal.
- The
matter be remitted to the primary judge for further determination.
On appeal from the Federal Court of Australia
Representation
B W Walker SC with P McQueen and C E Bannan for the appellant (instructed by
K&L Gates)
N C Hutley SC and R C A Higgins SC with B K Lim SC and T M Rogan for the
first to third respondents (instructed by Gilbert + Tobin)
C L Lenehan SC with H D Ryan for the fourth respondent (instructed by
MinterEllison)
S P Donaghue KC, Solicitor-General of the Commonwealth, with
D Y Thistlewaite for the Australian Competition and Consumer
Commission,
intervening (instructed by Australian Government Solicitor)
Notice: This copy of the Court's Reasons for Judgment is subject to formal
revision prior to publication in the Commonwealth Law
Reports.
CATCHWORDS
Mayfield Development Corporation Pty Ltd v NSW Port Operations Hold Co Pty
Ltd
Statutes − Construction − Derivative Crown immunity − Where
State of New South Wales ("State") agreed Port Commitment
Deeds ("PCDs") with
first to third respondents ("NSW Ports") − Where PCDs required State to
compensate NSW Ports if certain
ports were not at full capacity and certain
volume of containers diverted to other port − Where appellant alleged NSW
Ports'
entry into PCDs breached ss 45 and 45DA(1) of Competition and Consumer
Act 2010 (Cth) ("CCA") − Whether ss 45 and 45DA(1) of CCA bound NSW
Ports despite presumption of derivative Crown immunity.
Equity − Estoppel − Abuse of process − Where Australian
Competition and Consumer Commission previously brought similar
proceedings
against NSW Ports ("ACCC Proceedings") − Where ACCC Proceedings dismissed
− Where appellant intervened in
ACCC Proceedings on limited basis −
Whether appellant estopped from bringing these proceedings − Whether these
proceedings
constituted abuse of process.
Contract − Deed of release − Where appellant executed deed of
release in favour of State − Where NSW Ports not mentioned
in or party to
deed − Whether deed of release barred claim against NSW Ports.
Words and phrases – "abuse of process", "capacity to contract", "Crown
immunity", "deed of release", "derivative Crown immunity",
"estoppel", "freedom
to contract", "impairment of legal relations", "issue estoppel", "legal rights
or interests", "presumption of
legislative intention".
Competition and Consumer Act 2010 (Cth), ss 2A, 2B, 2C, 45, 45DA, 51
Ports Assets (Authorised Transactions) Act 2012 (NSW), ss 7, 25, Pt 2
- GAGELER CJ.
In a proceeding in the original jurisdiction of the Federal Court of Australia,
Mayfield Development Corporation Pty Ltd
("Mayfield") claims that NSW Port
Operations Hold Co Pty Ltd, Port Botany Operations Pty Ltd and Port Kembla
Operations Pty Ltd (together
"Port Operations") contravened ss 45 and 45DA of
the Competition and Consumer Act 2010 (Cth) ("the CCA") by entering into
certain "Port Commitment Deeds" ("the PCDs") containing certain "compensation
provisions", and
reaching a cognate arrangement or understanding, with the State
of New South Wales ("the State"). There is no dispute that Port Operations
entered into the PCDs containing the compensation provisions in 2013 as a
condition for completion of the sale to and purchase by
Port Operations of
"ports assets" in "authorised transactions" under the Ports Assets
(Authorised Transactions) Act 2012 (NSW) ("the PAAT Act").
- This
appeal concerns the correctness of answers given by the primary judge (McElwaine
J)[1] and affirmed on appeal by
the Full Court of the Federal Court (Lee, Colvin and Stewart
JJ)[2] to three separate
questions stated for determination in the proceeding. The separate questions
were stated against the background
of an earlier proceeding in the original
jurisdiction of the Federal Court which culminated in the decision of a
differently constituted
Full Court (Allsop CJ, Yates and Beach JJ) in
Australian Competition and Consumer Commission v NSW Ports Operations Hold Co
Pty Ltd ("ACCC v NSW
Ports").[3] The Full Court
in that earlier decision rejected a materially identical claim of contravention
of s 45 of the CCA brought by the
Australian Competition and Consumer Commission
("the ACCC") against Port Operations in respect of essentially the same
conduct.
- For
the reasons explained by Gordon, Gleeson and Beech-Jones JJ, I consider the
answers given by the primary judge and affirmed by
the Full Court to two of the
questions indubitably correct. Mayfield is not precluded from pursuing its claim
in the proceeding by
reason of its limited participation in the earlier
proceeding. Nor is the proceeding barred by the terms of a deed of release
entered
into by Mayfield and the State.
- The
remaining question was framed to ask whether "derivative Crown immunity" is "a
complete answer" to Mayfield's claim that Port
Operations contravened ss 45 and
45DA of the CCA. Properly regarding itself as constrained to follow the
reasoning of the majority
in ACCC v NSW Ports, absent "compelling
reasons" for considering that reasoning to have been
wrong,[4] the Full Court
unanimously affirmed the answer to that remaining separate question to be "Yes".
Together with Gordon, Gleeson and
Beech-Jones JJ, I am of the opinion that the
correct answer is "No".
- The
reasoning of the majority in ACCC v NSW Ports, comprising that of Allsop
CJ with whom Yates J expressed agreement, aligned in critical respects with that
of Jagot J who had been
the primary judge in that earlier
proceeding.[5] In deference to
that reasoning, I express my own reasons for disagreeing with it.
- For
reasons to be explained, I consider Allsop CJ to have been correct in his
identification and expression of the underlying principle
of statutory
construction and in his treatment of that principle as applicable to the
construction of s 45 of the CCA to limit the
scope of its application. My
disagreement with his Honour's reasoning is confined to a disagreement about
whether application of
the principle to the construction of s 45 of the CCA (and
by parity of reasoning s 45DA) rendered the section inapplicable to conduct
engaged in by Port Operations for the purpose of entering into and giving effect
to authorised transactions under the PAAT
Act.[6] My opinion is that it
was not.
Identifying the applicable principle of statutory
construction and framing the requisite statutory inquiry
- The
expression "derivative Crown immunity" seems to have entered curial discourse as
a result of its having been used in a pleading
considered and found wanting in
NT Power Generation Pty Ltd v Power and Water
Authority.[7] A variation
of the expression appeared again in an argument considered and rejected in
Australian Competition and Consumer Commission v Baxter Healthcare Pty
Ltd.[8]
- Three
cumulative aspects of the consistent response of this Court to the use of the
expression in NT Power and in Baxter are appropriately recalled.
- First,
since Bropho v Western
Australia,[9] "Crown
immunity" has properly been understood as a principle of statutory
construction.[10] The
principle is that the Crown (meaning the body politic of the Commonwealth or of
a State or Territory, and encompassing an agent
or instrumentality of the
executive government of such a body
politic[11]) "is not bound by
statute unless a contrary intention can be discerned from all the relevant
circumstances".[12]
- Second,
for the Crown to be "bound" by a statute within the meaning of that principle of
statutory construction is for the statute
to "impair[]" the "existing legal
situation" of the Crown.[13]
A statute might impair the existing legal situation of the Crown not only by
imposing a legal liability or legal constraint on the
Crown but also by
"divesting" the Crown of a legal right or
interest.[14] Conformably
with the underlying notion of "impairment", as the Full Court noted in the
decision under appeal, the notion of "divestiture"
in this context is that of
diminution or material adverse
alteration.[15]
- Third,
the expression "derivative Crown immunity" is at best an inadequate description
of the legal consequence of a statute properly
construed not to bind the Crown
having no application to impose a legal liability or legal constraint on a
person other than the
Crown if and to the extent that the imposition of that
liability or constraint on that person would operate to divest the Crown of
a
legal right or interest.[16]
The description is inadequate in that the legal consequence to which it refers
is neither "derivative" nor an "immunity". The legal
consequence to which it
refers is rather a
"corollary"[17] – a
working out – of the principle of statutory construction.
- Before
NT Power and Baxter, the CCA in an earlier
form[18] had been construed
in Bradken Consolidated Ltd v Broken Hill Proprietary Co
Ltd[19] not to bind the
Crown in right of a State. A majority of the Court in Baxter noted that
the Bradken construction was "reinforced in so far as the Crown was not
carrying on a business" by the subsequent insertion of s
2B.[20]
- Bradken
had also illustrated that an outworking of that construction of the CCA not
to bind the Crown was to render ss 45 and 47 inapplicable
to constrain conduct
of non-government parties in circumstances where application of those provisions
to constrain that conduct would
have divested the Crown of proprietary and
contractual rights.[21] In
light of Bradken, and consistently with the majority's analysis in NT
Power,[22] the majority
in Baxter identified the applicable principle of construction to have
been that "since the [CCA] does not bind the Crown ... when it is not
carrying
on a business, then, save to the extent to which a contrary intention appears,
the [CCA] will not be read so as to divest
the Crown of ... legal rights or
interests".[23]
- Application
of that principle of construction led in Baxter to the "real question"
for determination in that case having been identified as the "extent" to
which "the reach" of ss 46 and 47 of the CCA was "modified by the operation of
the principle of
construction".[24] The
ultimate holding in Baxter was that the principle did not preclude
application of those sections to the conduct of the non-government party
impugned in that
case. That was not because the context of the CCA was seen to
manifest an intention contrary to the operation of the principle. Rather,
it was
because the principle operating on the construction of the sections was held not
to have been engaged. The principle was held
not to have been engaged because,
as with the application of s 46 to the conduct of non-government parties
impugned in NT
Power,[25] the
application of ss 46 and 47 to the conduct of the non-government party impugned
in Baxter did not operate to divest the Crown of any legal right or
interest.[26]
- There
having been no relevant change to the CCA since Baxter, and there being
no material difference for the purpose of the principle of construction
articulated in Baxter between the operative provisions in Pt IV of the
CCA (in particular between ss 46 and 47 on the one hand and ss 45 and 45DA on
the other hand), the principle of construction
identified in Baxter must
be recognised as continuing to govern the construction and application of those
provisions.
- The
argument of the ACCC intervening in the present case that the CCA "evinces an
intention to exclude derivative Crown immunity",
with the result that ss 45 and
45DA are to be construed to manifest an intention to apply in accordance with
their terms even if
their application would divest the Crown of a legal right or
interest, must be rejected because it is inconsistent with the dispositive
reasoning in each of Baxter and NT Power.
- To
the extent that the ACCC seeks contextual support for its argument from ss 2 and
51 of the CCA, it is appropriate to note that s 2 was inserted and s 51(1) was
amended to take its current form at the same time as s 2B was
inserted.[27] Neither s 2 nor
s 51 is in terms directed to the principle of construction earlier identified in
Bradken and subsequently held in Baxter to have been affirmed by
s 2B and neither can coherently be treated as having had the hitherto
unrevealed purpose or collateral effect
of displacing the principle which s 2B
contemporaneously affirmed.
- Sections
2A, 2B and 2C demonstrate by their very presence that pursuit of the object
identified in s 2 of the CCA is not incompatible with provisions of the CCA
having a differential operation in their application to alter the legal
situation of the bodies politic of the Commonwealth, States and Territories.
- Section
51 of the CCA, which existed in its original form at the time of Bradken,
is directed to the determination of whether Pt IV has been contravened. In
relevantly providing in s 51(1)(b) that "anything done in a State" that is
"specified in, and specifically
authorised by ... an Act passed by the
Parliament of that State" is to be "disregarded" in determining whether a person
has contravened
Pt IV, the section "operates distributively over each of the
ultimate facts (being acts or things) which together might otherwise constitute
a contravention".[28] The
section is not directed to the logically anterior question of the construction
of Pt IV.
- In
ACCC v NSW Ports, Allsop CJ recognised the principle of construction
identified in Baxter to govern the construction of Pt IV of the CCA and
thereby to limit the application of s
45.[29] His Honour further
recognised the inquiry posited by that construction to be into whether
application of the section to the impugned
conduct of Port Operations would
result in divestiture of a legal right or interest of the State, identifying the
two subsidiary
questions on which the outcome of the posited inquiry turned as:
what was the relevant legal right or interest of the State; and
would that right
or interest of the State be divested by the application of the section to the
impugned conduct of Port Operations?
[30]
- In
so construing Pt IV of the CCA, and in so framing the inquiry required to
determine whether s 45 (and by parity of reasoning s 45DA) applied to the
impugned
conduct of Port Operations, Allsop CJ was in my opinion
correct.
Undertaking the requisite statutory inquiry
- Having
framed the requisite inquiry in ACCC v NSW Ports, Allsop CJ turned to the
undertaking of that inquiry.
- His
Honour identified the relevant legal right or interest of the State as a
statutory right conferred on the Treasurer as representative
of the State by the
PAAT Act to "effect" an authorised transaction "as he chose to
direct".[31] His Honour in
that respect emphasised the need for the PAAT Act to be construed purposively as
a whole by reference to its subject-matter and legislative history, and referred
compendiously to
ss 4, 5, 6, 7, 9, 11, 34, 35 and
36.[32] His formulation of
the relevant statutory right nevertheless drew on the specific language of s 7
that "[a]n authorised transaction is to be effected as directed by the Treasurer
and can be effected in any manner considered appropriate
by the Treasurer" and
that "[t]here are no limitations as to the nature of the transactions or
arrangements that can be entered into
or used for the purposes of an authorised
transaction".
- The
gist of his Honour's reasoning to the conclusion that application of s 45 of the
CCA to the impugned conduct of Port Operations
would divest the State of the
statutory right conferred on the Treasurer as representative of the State by the
PAAT Act was contained in the proposition that "[i]f the legal effect of the
transaction was not as [the Treasurer] directed because of the
severance and
unenforceability of the compensation provisions by way of ss 4L and 45 of the
[CCA], there was or would have been a
divestiture of that [statutory]
right".[33]
- The
essential difficulty with this reasoning was pointed out by Beach J in dissent
in ACCC v NSW
Ports.[34] The difficulty
is that such statutory right as might be conferred on the Treasurer by the PAAT
Act to "effect" an authorised transaction "as he chose to direct" could be
divested by the application of s 45 of the CCA to conduct
engaged in by Port
Operations through the operation of s 4L of the CCA only if that statutory right
could extend to dispensing with
or exempting a non-State party to an authorised
transaction from compliance with s 45 of the CCA. It could not.
- Leaving
aside the obvious constitutional difficulty of a State law purporting to
dispense with or exempt from compliance with a Commonwealth
law, the essential
difficultly lies in construing s 7 of the PAAT Act (whether alone or in
combination with other provisions of the PAAT Act) as conferring any entitlement
on the Treasurer to effect an authorised transaction otherwise than on terms to
which a non-State
party to the transaction agrees. Whether a non-State party to
an authorised transaction is lawfully able to agree or give effect
to a term of
an authorised transaction considered appropriate by the Treasurer lies beyond
the scope of the section.
- This
limitation on the scope of the statutory right conferred on the Treasurer as
representative of the State by the PAAT Act reflects the incapacity of an
executive government of an Australian body politic by contract or otherwise to
dispense with compliance
with the law, which is a "general constitutional
principle"[35] that is
"fundamental to our law"[36]
and which is therefore not to be taken to be departed from by statute in the
absence of a "clear expression of an unmistakable and
unambiguous [legislative]
intention".[37] Not only is a
clear expression of an unmistakable and unambiguous legislative intention to
exempt a non-State party to an authorised
transaction from compliance with the
general law which governs the conduct of that party absent from the PAAT Act,
but s 25(2) of the PAAT Act indicates a legislative intention for the
relationship between the PAAT Act and other State legislation of general
application to be determined by regulations made under s 39 of the PAAT Act.
- To
the inquiry correctly posited, as to whether the application of s 45 or
s 45DA to conduct engaged in by Port Operations for the
purpose of entering
into and giving effect to authorised transactions under the PAAT Act would
result in divestiture of a legal right or interest of the State, the correct
answer is that it would not.
Disposition
- I
agree with the orders proposed by Gordon, Gleeson and Beech-Jones JJ.
- GORDON,
GLEESON AND BEECH-JONES JJ. The appellant ("Mayfield") says that it lost
the opportunity to develop land at the Port of
Newcastle ("the Mayfield
Site") for use as a container facility because, in 2013, the State of New South
Wales ("the State"), the
fourth respondent, in privatising Port Botany and
Port Kembla, agreed to Port Commitment Deeds ("PCDs") with the first to third
respondents
("NSW
Ports").[38] Clause 3 of
the PCDs included terms that would require the State to pay compensation to NSW
Ports if, in two consecutive financial
years, Port Botany or Port Kembla were
not at full capacity for the import and export of containers, and container
volumes beyond
a defined threshold were diverted from Port Botany or Port Kembla
to the Port of Newcastle ("the compensation provisions").
- In
this proceeding, Mayfield claimed (collectively, "the Mayfield Claims")
that:
(1) NSW Ports breached s 45(2)(a)(ii) of the Competition and Consumer
Act 2010 (Cth) ("the CCA") by entering into the PCDs containing
the compensation provisions, which had the purpose or likely effect of
substantially
lessening competition in the market for the supply of port
services for container cargo in the State;
(2) NSW Ports also breached ss 45(2)(a)(ii) and 45(2)(b)(ii) by reaching
and being involved in the State's giving effect to a provision of an
understanding with the State that the
operator of the Port of Newcastle would
indemnify the State for any payments made under the compensation provisions;
and
(3) NSW Ports acted in concert with the State in contravention of s 45DA(1)
of the CCA by executing the PCDs and arriving at the understanding,
which hindered or prevented Mayfield from supplying container
port services
at the Port of Newcastle and thereby caused substantial damage to Mayfield's
business.
- In
an earlier proceeding, the Australian Competition and Consumer Commission ("the
ACCC") had brought a similar claim against NSW
Ports, which was confined to
an alleged contravention of ss 45(2)(a)(ii) and 45(2)(b) by reason of its
entry into and giving effect to the PCDs ("the ACCC
Proceeding").[39] That claim
failed in the Federal Court of Australia at first instance and on appeal for
reasons that included a determination that,
on the proper construction of
the CCA, by reason of derivative Crown immunity, s 45 of the CCA did
not apply to the conduct of NSW Ports in respect of its entry into the
PCDs.[40] Mayfield was given
leave to intervene in the appeal in the ACCC Proceeding ("the ACCC
Appeal").[41] Mayfield filed
written submissions but did not otherwise participate in the ACCC Appeal.
- In
this proceeding, in addition to denying the alleged contraventions of
the CCA, NSW Ports and the State again advanced derivative
Crown immunity
in answer to the Mayfield Claims. NSW Ports and the State also alleged that the
issue of derivative Crown immunity
did not need to be determined because (1) a
deed of release between, relevantly, Mayfield and the State ("the Deed of
Release") bars
Mayfield from bringing the proceeding;
(2) alternatively, Mayfield is estopped from bringing the proceeding
because of its active
participation as an intervener in the ACCC Proceeding
brought against NSW Ports in respect of the same issues; and
(3) alternatively,
and for broadly similar reasons, this proceeding is
an abuse of process. The State was joined as a party to this proceeding on the
basis that the success of the Mayfield Claims would mean that relevant parts of
the PCDs would be severed by s 4L of the CCA.
- Three
separate questions were stated for determination in this proceeding,
namely:
"(a) By reason of [Mayfield's] intervention in [the ACCC Appeal],
is [Mayfield] precluded (by principles of res judicata, estoppel,
abuse of process or similar) from contending in these proceedings that
ss 45 and 45DA(1) of the [CCA] apply to the entry into the [PCDs] by
[NSW Ports] ...?
...
(b) If [Mayfield] is not estopped or otherwise precluded from arguing that ss 45
and 45DA(1) of [the] CCA apply or were contravened, is 'derivative Crown
immunity' ... a complete answer to the [Mayfield Claims]?
...
(c) Does the Deed of Release entered into on 24 December 2013,
by [Mayfield], Anglo Ports, Grup Maritim TCB, SL, [Newcastle Port
Corporation] and the State, and payment being made upon settlement on that date
in accordance with its terms, operate as a release,
bar and[/]or complete
defence to, or otherwise preclude, the claims made by [Mayfield] in this
proceeding?"
- The
primary judge determined that (a) Mayfield's intervention in the ACCC Appeal did
not preclude it from advancing this proceeding;
(b) his Honour was bound to
follow the decision of the majority of the Full Court of the Federal Court of
Australia in the ACCC
Appeal[42] holding that
derivative Crown immunity was a complete answer to the Mayfield Claims; and
(c) the Deed of Release did not preclude
the Mayfield Claims. The primary judge
thus answered the stated questions: (a) "No"; (b) "Yes"; and (c) "No" and
dismissed the proceeding
with costs.
- Mayfield's
appeal to the Full Federal Court in relation to the primary judge's answer to
question (b) about derivative Crown immunity
was dismissed. In light of
that answer, it was unnecessary for the Full Federal Court to decide
the contentions of NSW Ports and
the State that the primary judge had erred
in answering the other two questions adversely to them but, had they been
necessary to
decide, the Full Federal Court would not have upheld their
contentions. The Full Federal Court ordered that Mayfield should pay
60
per cent of the respondents' costs of the appeal.
- The
issue presented by Mayfield's appeal in this Court is whether, by operation
of the presumption of derivative Crown immunity,
ss 45 and 45DA do not
apply to the impugned conduct of NSW Ports. Both NSW Ports and the State,
by notices of contention, seek to maintain the contentions
that Mayfield is
barred or estopped from bringing this proceeding and that this proceeding is
otherwise an abuse of process. NSW
Ports and the State also cross-appeal against
the Full Federal Court's costs orders, contending that they should have received
all
of their costs. The ACCC was granted leave to intervene in support of
Mayfield.
- For
the following reasons, each of the respondents' contentions should be rejected.
Mayfield is not barred or estopped from bringing
this proceeding, nor is the
proceeding an abuse of process. The Full Federal Court erred in concluding that
ss 45 and 45DA(1) of the CCA did not bind NSW Ports in its dealings with
the State. The appeal should therefore be allowed with costs and the
consequential
orders sought by Mayfield should be made.
- These
reasons will set out the background to the appeal, then address the notices
of contention, before determining the issue of derivative
Crown
immunity.
Background
- The
majority of shipping cargo including bulk and container cargo from or bound for
NSW passes through Port Botany, Port Kembla or
the Port of Newcastle. Port
Botany is the principal port in NSW and the only port in NSW with container
terminals. Port Kembla is
primarily a bulk and vehicle port, and the Port of
Newcastle is primarily a bulk port.
- In
September 2011, the NSW Government announced that it would privatise Port Botany
by way of a 99-year lease and, in doing so, would
ensure that key public
interest outcomes were protected. At the time, Port Botany was operated by
Sydney Ports Corporation, which
was constituted under the Ports and Maritime
Administration Act 1995 (NSW). Sydney Ports Corporation, as a "State owned
corporation" ("SOC") within the meaning of s 3(1) and Sch 5 of the State
Owned Corporations Act 1989 (NSW) ("the SOC Act"), was legally disabled from
disposing of its fixed assets or main undertakings without the approval of
shareholder
Ministers.[43]
- On
27 July 2012, the Treasurer and Minister for Roads and Ports announced that the
NSW Government would proceed with the long-term
lease of both Port Botany
and Port Kembla. On 31 July 2012, the Treasurer notified Newcastle Ports
Consortium that the State would
support the development of a multi-use cargo
facility at the Port of Newcastle, but not a container terminal. By late 2012,
it had
been decided that Port Botany would remain the State's primary container
port, and that Port Kembla would meet any additional demand
for container
handling facilities created when Port Botany reached capacity. In November 2012,
the Parliament of NSW passed the Ports Assets (Authorised Transactions) Act
2012 (NSW) ("the PAAT Act"). That Act, among other things,
authorises the transfer by the State of a specific class of assets
identified in the PAAT Act, namely the three State‑owned ports
– Port Botany, Port Kembla and the Port of
Newcastle.[44]
- During
the privatisation process, some bidders for the acquisition of Port Botany
and Port Kembla intimated that the price they were
prepared to pay for Port
Botany and Port Kembla might be discounted if additional container capacity were
to be developed at the
Port of Newcastle. The State decided to address that
concern in the PCDs, which were entered into by the Treasurer on behalf of the
State with the successful bidder, NSW Ports, on 31 May 2013. The PCDs have
a term of 50 years. They include the compensation provisions,
the effect of which is to require the State to pay compensation to NSW
Ports if container volumes through the Port of Newcastle exceed
a specified cap
and divert container cargo away from Port Botany or Port Kembla.
- In
December 2018, the ACCC Proceeding was instituted alleging that
the compensation provisions in the PCDs entered into and given
effect by
the State and NSW Ports in the course of the privatisation of Port Botany and
Port Kembla had the purpose and/or likely
effect of substantially lessening
competition, contrary to ss 45(2)(a)(ii) and 45(2)(b) of the
CCA.[45] The primary judge
dismissed the ACCC's application. Her Honour relevantly held that s 45 of
the CCA did not apply to the State's
entry into the PCDs because, under
s 2B of the CCA, the Crown in right of the State was only bound by Pt IV of
the CCA when carrying on a business and the privatisation of Port Botany
and Port Kembla did not occur in the course of operating
a
business.[46] Her Honour
further relevantly held that s 45 did not apply to NSW Ports in making and
giving effect to the compensation provisions
in the PCDs because its operation
would divest the State of a "legal right" under the PAAT Act to effect
the port privatisation in the manner the Treasurer saw fit, including the
right of the Treasurer to require the counterparty
to engage in conduct
that would otherwise contravene s 45 of
the CCA.[47]
- The
Full Federal Court dismissed an appeal from her Honour's
decision.[48] The Court held
that her Honour was correct to hold that the entry by the State into the PCDs
did not occur in the course of the State
carrying on a
business.[49] Allsop CJ
(with whom Yates J agreed) held that s 45 of the CCA could not apply to the
compensation provisions in the PCDs because,
if it did, ss 4L and 45 of
the CCA would apply to sever and render the compensation provisions
unenforceable and the consequence
would be a divestiture of "legal and statutory
rights of the Treasurer to direct a framework of rights and obligations of the
parties
to underpin the maximum value to be obtained on the hypothesis of a
monopoly".[50] Beach J,
in dissent, held that, properly construed in light of this Court's decision in
Australian Competition and Consumer Commission v Baxter Healthcare Pty
Ltd,[51] s 45
of the CCA applied to NSW Ports when contracting with the
State.[52]
Beach J relevantly held that the power conferred by the PAAT Act was no
more than a power to contract, which was not a relevant legal right or interest,
and that, even if it was a power to require
a counterparty to engage in conduct
that would otherwise contravene the CCA, this was not a legal right or
interest.[53]
- While
the ACCC Proceeding was on foot, Mayfield commenced this proceeding, seeking
damages against NSW Ports. Following judgment
in the ACCC Appeal, the
primary judge in this proceeding delivered judgment on the separate
questions, holding that he was bound
to follow the majority decision in the ACCC
Appeal as to the question of derivative Crown immunity. The Full Federal Court
dismissed
Mayfield's appeal, unanimously holding that Mayfield had not
demonstrated the reasoning of the majority in the ACCC Appeal in relation
to
derivative Crown immunity to have been plainly wrong.
Notices of
contention
- NSW
Ports and the State, by notices of contention in this Court, argued that the
issue of derivative Crown immunity need not be addressed,
relying on three
grounds: (1) the Deed of Release between, relevantly, Mayfield and the State
bars Mayfield from bringing the proceeding;
(2) alternatively, Mayfield is
estopped from bringing the proceeding by its participation in the ACCC
Proceeding; (3) alternatively,
and for broadly similar reasons, the
proceeding is an abuse of process. Those contentions must be rejected.
Deed of Release does not apply
- On
24 December 2013, Mayfield, Newcastle Port Corporation and the State, among
others, executed the Deed of Release in which Mayfield
was a "Releasor" and
the State and Newcastle Port Corporation were "Releasees".
- By
cl 4.1 of the Deed of Release, Mayfield (as a Releasor) released the State
(as a Releasee) from all "Claims" which Mayfield had
or may have had "against"
the State arising from or in connection with the "Release Matters", defined
broadly to include, in substance,
any matters arising between Mayfield and the
State in respect of the Mayfield Site. Clause 4.4 provides that the release in
cl 4.1
can be "pleaded in bar and as a complete defence" to any claim to
which it applies. The question is: does cl 4.1 of the Deed of Release,
properly construed, bar any or all of the Mayfield Claims. The answer is
"no".
- It
is uncontentious that this proceeding concerns "Release Matters". It is also
clear that this proceeding and the Mayfield Claims
constitute a "Claim"
or "Claims" as defined in that they are each an "action, suit, cause of
action ..." etc. However, neither this
proceeding nor the Mayfield Claims
is a "Claim" which Mayfield has or may have "against" the State as the
plain words of cl 4.1 require.
- The
release in cl 4.1 was given by Mayfield in favour of the State, not in favour of
NSW Ports. Contrary to the submissions of the
State, there is no basis to
contend that the release applies to "any proceeding to which the State is a
necessary respondent and
which could affect the State's legal rights". That
construction distorts cl 4.1. On its face, the release was intended to, and
does,
foreclose, relevantly, the possibility of Mayfield making any future
claims against the State connected with the development of the
Mayfield Site.
Like the text of cl 4.1, that purpose gives central importance to the
existence of a claim against the State.
- The
release does not and cannot apply to this proceeding because this proceeding
involves claims by Mayfield against NSW Ports, not
against the State. It is
against NSW Ports that Mayfield seeks relief. While Mayfield initially sought
declarations implicating the
State, Mayfield was granted leave to amend its
claim to remove each claim for declaratory relief. As counsel for Mayfield
explained
before the primary judge, the basis for removing the claims for
declaratory relief was "to make it clear that no claim is made against
the
State".
- The
fact that the State's conduct might be impugned, by virtue of it being party to
an unlawful "understanding", in this proceeding
does not amount to a claim
against the State. There is not a legal claim against a person every time
their conduct is incidentally criticised in court proceedings. Nor
does the fact
that the State is a party to the proceeding mean the proceeding involves a claim
against the State. The State is a
party because its interests may be affected by
the potential application of s 4L of the CCA to any findings of
contravention that
might be made. If s 4L is engaged by any success that
Mayfield may have in this proceeding then s 4L will operate of its own accord
to
sever the impugned provisions of
the PCDs.[54] Therefore,
Mayfield's success in the proceeding would have automatic consequences for the
State, by reason of it being a party to
the PCDs.
- However,
the fact that, by reason of s 4L of the CCA, Mayfield's success may
have consequences for the State does not somehow transform the
proceeding into a
claim "against" the State. If the preconditions to engaging s 4L of the CCA
are established,[55] then its
consequences are mandatory. It operates without any court order invoking
it,[56] although a court may
resolve a dispute about whether it has been engaged and the scope of its
application. If s 4L is engaged by
the findings made in this proceeding, s 4L
has consequences for the State, just as it would have consequences for any party
to a
contract affected by s 4L. Even so, it does not follow that Mayfield
is claiming relief against the State or otherwise making a claim
against
the State.
No issue estoppel
- Issue
estoppel is a common law doctrine informed by considerations of finality and
fairness.[57] Issue estoppel
precludes "the raising in a subsequent proceeding of an ultimate issue of fact
or law which was necessarily resolved
as a step in reaching the
determination made" in a prior
judgment.[58] A judicial
determination directly involving an issue of fact or law disposes once and for
all of the issue, so that it cannot afterwards
be raised between the same
parties.[59] The justice
of binding a person to the outcome of a prior proceeding is that, by virtue
of their participation in that proceeding,
"the person has already had
an opportunity to present evidence and
arguments".[60]
- An
issue estoppel may arise in respect of a party that was an intervener in the
previous proceeding.[61]
Whether issue estoppel arises in respect of an intervener turns on the extent of
their participation in the previous proceeding.
As the primary judge explained,
"[t]he justice of binding a person by issue estoppel is active participation in
the conduct of a
proceeding". Or, put in different terms, an issue estoppel can
arise against an intervener that "has had a fair and full opportunity
to contest
the issue".[62]
The rationale for the requirement of fair and full participation was
explained by this Court in Tomlinson v Ramsey Food Processing Pty
Ltd:[63]
"It would be quite unjust for ... a person to be precluded from asserting what
the person claims to be the truth if the person did
not have an opportunity to
exercise control over the presentation of evidence and the making of arguments
in the earlier proceeding
and if the potential detriment to the person from
creating such an estoppel was not fairly taken into account in the decision to
make or defend the claim in the earlier proceeding or in the conduct of the
earlier proceeding."
- Mayfield
is not estopped from litigating the derivative Crown immunity issue in this
proceeding by reason of its prior intervention
in the ACCC Appeal. Mayfield did
not have a fair and full opportunity to contest that issue in the ACCC Appeal.
First, Mayfield's
participation as an intervener in the ACCC Appeal was
constrained. Under the Federal Court Rules 2011 (Cth), "[t]he role of
the intervener is solely to assist the Court in resolving the issues raised
by the parties".[64] In
other words, the intervener's role is in the nature of an amicus curiae.
Mayfield's limited role as intervener under the Federal Court Rules was
very different to the kind of intervention discussed by this Court in
Australian Securities Commission v Marlborough Gold Mines
Ltd[65] where, under the
relevant statute, the Commission could exercise a right to intervene whereupon
it was "deemed to be a party".
- Second,
Mayfield was granted leave to intervene in the ACCC Appeal on terms limited to
filing 15 pages of written submissions in that
appeal. Mayfield made no
oral submissions and did not otherwise participate in the appeal. Mayfield did
not participate in the trial.
- Third,
the fact that Mayfield relied in this proceeding on the same critical facts and
claims as those in the ACCC Proceeding is
not determinative. Mayfield could
not[66] and "did not have an
opportunity to exercise control over the presentation of
evidence"[67] or the shaping
of the issues in the trial of the ACCC Proceeding. Mayfield intervened in the
ACCC Appeal taking the facts and issues
from the trial of the ACCC Proceeding as
it found them.
- Finally,
there is no basis to contend that, because Mayfield considered its submissions
to be "fully ventilated" and elected not
to make oral submissions, it had a
fair and full opportunity to participate actively in the ACCC Proceeding. As has
been explained,
Mayfield was constrained as an intervener. Its conduct was
consistent with those constraints. For all of those reasons, that cannot
be said
to be "active participation" by Mayfield.
- Mayfield's
intervention in the ACCC Appeal also did not confer on it any other rights or
privileges. Mayfield could not determine
or influence the decision by the ACCC
not to seek special leave to appeal and there was no realistic possibility that
it could have
sought special leave itself. It did not have standing to challenge
the order dismissing the ACCC Appeal on the factual determinations
of the Full
Federal Court. It was bound by that order only as a matter of precedent and in
the same way that all other persons are
affected by a precedent established by
an intermediate court of appeal; Mayfield was not otherwise affected by that
order. It is difficult to accept that, in circumstances where Mayfield
could not have sought special leave to appeal from the orders made
by the Full
Federal Court in the ACCC Appeal, Mayfield cannot raise the derivative Crown
immunity issue in its own proceeding, since
that would leave Mayfield with no
avenue to challenge that aspect of the decision in the ACCC Appeal, which would
thereby leave Mayfield
even more "bound" by the decision than if it had been a
party to the ACCC Proceeding. This would not be a fair outcome. Moreover,
no liabilities were attached to Mayfield's intervention, save that the costs of
the intervention were reserved, underscoring the
limited nature of Mayfield's
participation in the ACCC Appeal.
- For
those reasons, Mayfield is not estopped in this proceeding from raising the
derivative Crown immunity issue merely by its limited
role as intervener in
the ACCC Appeal.
Proceeding not an abuse of process
- Although
the doctrine of abuse of process is informed, in part, by similar considerations
of finality and fairness as issue estoppel,
it is "inherently broader and more
flexible than
estoppel".[68]
As Mason CJ said in Rogers v The Queen: "there are two
aspects to abuse of process: first, the aspect of vexation, oppression and
unfairness to the other party to the litigation
and, secondly, the fact that
the matter complained of will bring the administration of justice into
disrepute".[69]
- The
legal process of a court may be abused where the intention is to
"litigate anew a case which has already been disposed of by
earlier
proceedings", where to do so causes manifest unfairness to a party or would
otherwise bring the administration of justice
into
disrepute.[70] "[M]aking a
claim or raising an issue which was made or raised and determined in an earlier
proceeding, or which ought reasonably
to have been made or raised for
determination in that earlier proceeding, can constitute an abuse of process
even where the earlier
proceeding might not have given rise to an
estoppel".[71] Similarly,
"making such a claim or raising such an issue can constitute an abuse of
process", even "where the party seeking to make
the claim or to raise the issue
in the later proceeding was neither a party to that earlier proceeding, nor the
privy of a party
to that earlier proceeding, and therefore could not be
precluded by an
estoppel".[72]
- It
is not an abuse of process for Mayfield to raise the issue of derivative Crown
immunity in this proceeding, in circumstances where
Mayfield had raised the
issue in the ACCC Appeal in its role as intervener. Mayfield had a submission to
advance in the ACCC Appeal
on derivative Crown immunity that was useful and
different from the submissions of the
parties.[73] Mayfield's
participation in the ACCC Appeal was, however, limited.
Its intervention recognised that the determination of the derivative
Crown immunity issue in the appeal would set a binding precedent. Mayfield's
conduct of this proceeding is consistent with that position.
Mayfield is
entitled to advance a reasonable case challenging the existing state of the
law. By doing what it is perfectly entitled
to do, it cannot be said that
Mayfield's conduct brings the administration of justice into disrepute. To
prevent Mayfield for all
time from raising the issue of derivative Crown
immunity in its own separate proceeding would undermine, rather than promote,
the
administration of justice.
- There
is also no oppression of or unfairness to NSW Ports or the State.
First, the scheme of the CCA is such that a respondent is
at the risk of
relitigating the same or substantially similar issues where, as here, the ACCC
brings proceedings for contravening
conduct which also causes damage to other
persons.[74] Second, NSW
Ports and the State contributed to Mayfield bringing this proceeding after the
ACCC Proceeding. Mayfield applied to lift
a stay on this proceeding so that this
proceeding could be heard concurrently with the ACCC Proceeding. That
application was successfully
opposed by NSW Ports and
the State.[75] NSW
Ports' opposition was on the basis that it would be unfair for it to have to
defend each proceeding in
parallel.[76] It is unclear
why it is now the case that a consecutive hearing of this proceeding could
amount to an abuse of process.
Derivative Crown immunity
Crown immunity
- The
principle of Crown immunity is a presumption of statutory interpretation that a
statute will not bind the Crown unless a contrary
intention appears from the
statute.[77] In Bropho v
Western Australia, the plurality of this Court rejected a "stringent and
rigid test" for identifying such a contrary
intention,[78] emphasising
that it is a "general principle of statutory construction, not some
prerogative power of the Crown to override a statute,
or dispense with
compliance".[79]
- As
the plurality explained in Bropho, the strength of the presumption
"will depend upon the circumstances, including the content and purpose of
the particular provision
and the identity of the entity in respect of
which" the question
arises.[80] So, for example,
in Bropho, which concerned the application of general provisions for the
protection of Aboriginal places and objects to employees of a governmental
corporation engaged in commercial and developmental activities, the principle of
Crown immunity was said to represent "little more
than the starting point of the
ascertainment of the relevant legislative
intent".[81] Brennan J
agreed, stating that the application of the principle of construction required
consideration of "the terms of the statute,
its subject matter, the nature of
the mischief to be redressed, the general purpose and effect of
the statute, and the nature of
the activities of the Executive Government
which would be affected if the Crown is
bound".[82]
Derivative Crown immunity
- It
is a corollary of the presumption of Crown immunity, known as derivative Crown
immunity, that "a statutory provision not binding
on the Crown must be denied an
incidence upon a subject of the Crown because that incidence would be in legal
effect upon the Crown".[83]
Like Crown immunity, derivative Crown immunity is a presumption of statutory
interpretation that may be rebutted by a contrary
intention.[84] Such a
contrary intention "may appear from the language of the Act, and its objects and
subject matter as emerging from that
language".[85] Like the
presumption that a statute does not bind the Crown, derivative Crown immunity
should not be treated as a "prerogative power
of the Crown to override a
statute, or dispense with
compliance".[86]
- In
Wynyard Investments Pty Ltd v Commissioner for Railways (NSW),
Kitto J identified three "broad classes" of cases where derivative Crown
immunity applies: first, "cases where a provision, if applied
to a particular
individual or corporation, would adversely affect the exercise of an authority
which [they possess] or it possesses
as a servant or agent of the Crown to
perform some function so that in law it is performed by the Crown itself";
second, "cases in
which a provision, if applied to a particular individual or
corporation, would adversely affect some proprietary right or interest
of the
Crown, legal equitable or statutory"; and third, "an anomalous class of
cases where a provision creating a liability by reference
to the ownership or
occupation of property would, in its application in respect of certain kinds of
property, impose a burden upon
the performance of functions which, though not
performed by servants or agents of the Crown, are looked upon by the law as
performed
for the
Crown".[87]
- This
proceeding concerns the second kind of case. Kitto J explained that,
to fall within any of the classes of case identified, "it
must be found
that the application of the relevant provision to the subject who invokes
the Crown's immunity would be, in legal effect,
an application of it to the
Crown".[88]
"Whatever features of a case are relied upon as bearing upon the claim to
the benefit of the Crown's immunity ... must always be
looked at ... 'with
due regard to the nature of the immunity or privilege of the Crown which is
claimed, so that attention may be
directed to what is relevant to the particular
enquiry which is being
made'".[89]
- As Kitto
J explained in Wynyard, "[t]he object in view is to ascertain whether the
Crown has such an interest in that which would be interfered with if the
provision
in question were held to bind the corporation that the interference
would be, for a legal reason, an interference with some right,
interest, power,
authority, privilege, immunity or purpose belonging or appertaining to
the Crown".[90] The
scope of the principle and, in particular, the kinds of interest which might
attract the operation of the presumption have been
refined in subsequent
cases.
- In
Bass v Permanent Trustee Co Ltd, a majority of this Court described
derivative Crown immunity as "the common law rule that a statute is not to be
construed as divesting
the Crown of its property, rights, interests or
prerogatives in the absence of express words or necessary implication to that
effect".[91]
In NT Power Generation Pty Ltd v Power and Water Authority,
immediately after setting out that statement from Bass, four Justices
said that "[t]he better view is that the principle [of derivative Crown
immunity] applies to proprietary, contractual
and other legal rights and
interests and not
otherwise".[92] Their Honours
thus expressly rejected the proposition that the presumption applies to
circumstances going "beyond prejudice to property
rights, legal rights,
legal interests or legal
prerogatives",[93]
notwithstanding that it had been said to extend to "arrangements or
understandings" by Mason and Jacobs JJ in Bradken Consolidated Ltd v Broken
Hill Pty Co Ltd.[94] The
majority in NT Power declined to apply the presumption where the
application of a statute to a private party would cause the Crown to suffer
purely financial
consequences without divesting any legally enforceable interest
of the Crown.[95]
- In
Baxter, the plurality remarked on "[t]he need for concentration on legal
consequences", before affirming that, where it operates, the principle
of
derivative Crown immunity is relevant only if an Act would "divest the Crown of
proprietary, contractual or other legal rights or
interests".[96] Their Honours
also referred to "protect[ing] the legal rights of
governments"[97] but no issue
arises in this case as to whether there is any difference between preventing a
divestment of legal rights and protecting
such rights. The plurality had earlier
explained that it was important not to confuse "legal, equitable or
statutory rights and interests"
with "governmental, commercial, or
even political
interests".[98]
Significantly, the plurality held in Baxter that the Crown's
capacity to contract is not a legal right or interest which engages the
presumption, that capacity being in the
nature of a freedom rather than a
right.[99] As the plurality
said, while "[f]rom one point of view, it may be in the interests of a
government for it, and anyone who deals with
it, to have complete freedom to
contract ... in reality no one has such
freedom".[100]
- Thus
the Baxter formulation of the principle of derivative Crown
immunity – that it is relevant only if an Act would "divest the Crown
of proprietary,
contractual or other legal rights or
interests"[101] – is
narrower than the Wynyard formulation. Unlike the Wynyard
formulation, it does not refer to a "right, interest, power, authority,
privilege, immunity or purpose".
CCA
- This
proceeding concerns whether the principle of derivative Crown immunity applies
in the context of a Commonwealth law –
the CCA – in favour of the
Crown in right of the State. The question is whether the CCA may be said to
evince a contrary intention
to displace the presumption against the relevant
provisions of the CCA applying to divest the State of a relevant legal right or
interest. Because of the Commonwealth Parliament's power to make laws with
respect to trading corporations, this "is a question on
which the language of
the federal Parliament's legislation is
decisive".[102]
The proper starting point in the analysis is therefore to construe the
CCA.
- The
object of the CCA is "to enhance the welfare of Australians through
the promotion of competition and fair trading and provision
for consumer
protection".[103] The
relevant provisions are in Pt IV, headed "Restrictive trade practices"
– ss 45(2)(a)(ii) and 45(2)(b)(ii) as in effect on 31 May 2013,
and s 45DA(1) as in effect
between 31 May 2013 and 5 November
2017.
- Section
45 is headed "Contracts, arrangements or understandings that restrict dealings
or affect competition". As at 31 May 2013,
s 45(2) of the CCA
relevantly provided as follows:
"(2) A corporation shall not:
(a) make a contract or arrangement, or arrive at an understanding, if:
...
(ii) a provision of the proposed contract, arrangement or understanding has the
purpose, or would have or be likely to have the effect,
of substantially
lessening competition; or
(b) give effect to a provision of a contract, arrangement or understanding,
whether the contract or arrangement was made, or the
understanding was arrived
at, before or after the commencement of this section, if that provision:
...
(ii) has the purpose, or has or is likely to have the effect, of substantially
lessening competition."
- Section
45(2) applied, in terms, to any corporation. The plain and ordinary meaning
of the provision was to prohibit any corporation
from entering into or giving
effect to contractual provisions or understandings that have the relevant
purpose or likely effect of
substantially lessening competition.
- Section
45DA is headed "Secondary boycotts for the purpose of causing substantial
lessening of competition". Between 31 May 2013
and 5 November 2017, s 45DA
relevantly
provided:[104]
"(1) In the circumstances specified in subsection (3), a person must not, in
concert with a second person, engage in conduct:
(a) that hinders or prevents:
(i) a third person supplying goods or services to a fourth person (who is not an
employer of the first person or the second person);
or
(ii) a third person acquiring goods or services from a fourth person (who
is not an employer of the first person or the second person);
and
(b) that is engaged in for the purpose, and would have or be likely to have the
effect, of causing a substantial lessening of competition
in any market in which
the fourth person supplies or acquires goods or services.
...
(3) Subsection (1) applies if:
(a) the third person or the fourth person is a corporation, or both of them are
corporations; and
(b) the conduct would have or be likely to have the effect of causing
substantial loss or damage to the business of one of those
persons who is a
corporation."
- Sections
2A and 2B of the CCA relevantly have the effect that Pt IV of the CCA
binds the Crown in right of the Commonwealth so far as the Crown carries on a
business, directly or by an authority of
the
Commonwealth,[105]
and the Crown in right of each of the States and Territories so far as
the Crown carries on a business, directly or by an authority
of the State or
Territory.[106]
Those provisions were introduced as part of a legislative response that was
directed towards ensuring that "the prohibitions against
anti‑competitive
conduct can be applied to all businesses in
Australia".[107]
- Section
51(1) of the CCA relevantly empowers State and Territory Parliaments to exempt
conduct in a State or Territory from Pt IV of the CCA.
Section 51(1)(b) provides that, in deciding whether a person has
contravened Pt IV, anything done in a State (if the thing is specified in,
and specifically authorised by, State legislation or regulations) must be
disregarded.[108]
- Finally,
the effect of s 4L of the CCA has already been adverted to.
It relevantly provides that, if the making of a contract after
the
commencement of s 4L contravenes the CCA "by reason of the inclusion of a
particular provision in the contract, then, ... nothing
in [the CCA] affects the
validity or enforceability of the contract otherwise than in relation to that
provision in so far as that
provision is severable".
CCA applies
to corporations dealing with the Crown in exercising its contractual
capacity
- As
has been explained, by s 2B of the CCA, Pt IV does bind the Crown in right
of a State when it is carrying on a business. In that manner, s 2B
directly addresses the question whether
the State is bound by Pt IV: it is bound
when it is carrying on a business; conversely, it is not bound when it is not
carrying on
a business.[109]
In that context, it was common ground that Pt IV of the CCA, including
ss 45 and 45DA, did not apply to the State in formulating the State policy
with respect to the privatisation
of Port Botany and Port Kembla.
- It
does not necessarily follow, however, that ss 45 and 45DA of the CCA did
not bind NSW Ports, the counterparty to the PCDs. Derivative
Crown immunity may
devolve upon those who deal with the Crown, but it does not necessarily mean
that in all circumstances where the
Crown is not bound by a statute those
who deal or contract with the Crown are also not bound. So much is apparent from
the outcome
in Baxter, in which ss 46 and 47 of the Trade
Practices Act 1974 (Cth) ("the TPA") were held not to apply to State
purchasing authorities but to apply to the manufacturer and wholesaler of
medical
fluids and equipment with which they
dealt.[110]
- Rather,
whether ss 45 and 45DA bound NSW Ports is to be answered by reference to the
principle of construction identified: since, by s 2B, the CCA does not bind
the Crown in right of a State or Territory when it is not carrying on
a business, then, save to the extent
to which a contrary intention appears,
the CCA "will not be read so as to divest the Crown of proprietary, contractual
or other legal rights or
interests".[111]
- It
is instructive to examine how the plurality dealt with materially similar
provisions in Baxter. In Baxter, the plurality rejected the broad
proposition that ss 46 and 47 of the TPA had no application to any conduct
of corporations dealing with the Crown in the exercise of the Crown's
contractual capacity
by reason of the presumption of derivative Crown
immunity.[112] The
plurality rejected that proposition for a number of reasons.
- First,
to hold that ss 46 and 47 of the TPA did not apply to a corporation that was
carrying on dealings with a government in the course of its business would
involve
the "remarkable" conclusion that the corporation "enjoyed a general
immunity not available to the government when the government
was carrying on
business itself".[113] That
outcome would be "impossible to reconcile" with the object of the TPA declared
in s 2[114] and "would
go far beyond what is necessary to protect the legal rights of governments, or
to prevent a divesting of proprietary,
contractual and other legal rights
and interests".[115] While
State and Territory Parliaments could legislate under s 51(1) to protect
government interests,[116]
the specificity with which that was required to be done underscored the
importance of the legislative object declared in
s 2.[117] As the
plurality had earlier observed, "if State Parliaments see State interests
to be threatened by competition law, they have the
power of exemption given
by s 51(1) of the [TPA], provided ... they are willing to accept the
political responsibility of exercising that
power".[118] A general
immunity on the part of corporations dealing with the Crown would also
entail the "unacceptable" consequence that a corporation
dealing with the
Crown could expose the Crown to anti-competitive conduct, over the protests of
the Crown, to the Crown's
detriment.[119]
- Second,
the question was thus the extent to which the reach of ss 46 and 47
of the TPA, and the provisions relating to remedies, in their potential
application to the counterparty's conduct, was modified by
the operation of
derivative Crown
immunity.[120] The
submission that the provisions would not apply to the extent that they denied
the Crown "the right, power and capacity that it
had and has to enter
a contract of such kind as it wishes" was rejected as "impossible to
reconcile with the purpose and subject
matter of the
[TPA]".[121] As the
plurality then explained, it "is one thing to read the [TPA] so as not to
divest the Crown of legal rights", but "another
thing altogether to read
the [TPA] as giving an executive government (as distinct from a Parliament
acting under s 51(1) [of the TPA]), including all its servants and agents,
a freedom not enjoyed when the government itself is carrying on business, from
any impact" of anti-trust
regulation.[122]
- Third,
to protect the legal rights of the Crown it was not necessary to deny that entry
into a contract with the Crown by a non‑government
party could involve a
contravention of ss 46 and 47 of the TPA. It was not inconsistent with the TPA
that the entry by one party into a bilateral transaction is unlawful even while
it is lawful for the other
party.[123] The result was
not necessarily general unenforceability of the contract. Rather, the outcome
was determined by the detailed legislative
scheme concerning remedies, including
s 4L of the TPA.[124]
- Fourth,
the construction urged by the manufacturer in Baxter would have imposed
"a very extensive qualification upon the [TPA's] object of promoting competition
and fair trading in the public
interest", which is "strikingly at odds with the
way the [TPA] deals with governments when they themselves carry on
a business".[125]
- In
Baxter, the impugned conduct of the manufacturer was
unilateral.[126] However,
the result in Baxter did not turn on the characterisation of the conduct
as unilateral. As the plurality observed, "the terms of the [TPA] cover
(although
they are not limited to) conduct that includes making or giving effect
to contracts", and "some of the contraventions alleged but
not found
against the [manufacturer] were of that
kind".[127]
- In
this Court, there was no challenge to the correctness of the outcome or the
plurality's reasoning in Baxter. The same reasoning applies with equal
force to the question whether Pt IV of the CCA bound NSW Ports as a corporation
dealing with the State in the exercise of its capacity to contract. None of the
considerations
identified by the plurality is determinative but, taken together,
they tend against the conclusion that a corporation dealing with
the State might
be said to be immune from the operation of Pt IV wherever the State's
freedom to contract is adversely affected or interfered with.
- The
determinative issue is therefore whether the application of ss 45 and 45DA of
the CCA to NSW Ports would divest the State of some legal right or interest
– not being merely the freedom to contract –
so that Baxter
may be distinguished. If it would not divest any relevant legal right or
interest, then ss 45 and 45DA bound NSW Ports. The question then is whether the
PAAT Act conferred any relevant legal right or interest on the State. The answer
is "no".
PAAT Act conferred no legal right or interest
- The
PAAT Act, among other things, provides for the "restructuring of arrangements
for the operation and regulation of certain ports assets of
the
State".[128] Part 2 of the
PAAT Act relevantly authorises the transfer of ports assets to the private
sector, subject to certain
limitations.[129] A
transfer authorised by Pt 2 is defined as an "authorised
transaction".[130]
Authorised transactions are facilitated by the Treasurer having and being able
to exercise all functions necessary or convenient
for the purposes of an
authorised
transaction.[131] Section 7
provides that an authorised transaction "is to be effected as directed by the
Treasurer and can be effected in any manner considered
appropriate by the
Treasurer",[132]
with "no limitations as to the nature of the transactions or
arrangements that can be entered into or used for the purposes of" an
authorised
transaction.[133]
For the purposes of an authorised transaction, the PAAT Act provides,
among other things, for the possibility of the creation of a
SOC,[134] as well as
the possibility of the establishment of transaction companies in a number
of ways.[135]
- Section
7 confers no more than an authority and capacity to contract. Importantly,
neither s 7 nor any other provision of the PAAT Act requires a counterparty
to an authorised transaction to accept a transfer on whatever terms the
Treasurer chooses, let alone terms
that would otherwise contravene provisions of
the CCA. That the capacity to contract is required to be exercised against
the background
of other State laws, subject to exceptions, is apparent from
the terms of s 25. It provides that none of the provisions of the SOC
Act and no provision of the constitution of a statutory SOC or a subsidiary of
a
statutory SOC operates "to prevent, restrict or otherwise limit the carrying out
of a transaction arrangement or the exercise of
a function for the purposes of
an authorised
transaction",[136] and that
the provisions of the PAAT Act will prevail over other State legislation that is
prescribed by the regulations as an inconsistent provision for the purposes of
the section.[137] There is
no need to state that the capacity is to be exercised against the background of
Commonwealth law by reason of s 109 of the Constitution. Section 29
protects things done under the PAAT Act from certain kinds of civil liability
but does not authorise what would otherwise constitute a contravention of
the CCA.
- In
essence, the PAAT Act confers on the Treasurer the freedom, liberty or capacity
to propose terms to third parties and to effect an authorised transaction
if
such terms can be agreed. That freedom or capacity is not relevantly
distinguishable from the general freedom, liberty or capacity
to contract that
the plurality in Baxter held was insufficient to constitute a
relevant right or interest sufficient to engage the principle of derivative
Crown immunity.[138]
That the Treasurer is empowered to execute the authorised transactions
in a particular manner does not transform the nature of the
capacity,
liberty or freedom that the Treasurer is exercising. The value and significance
of the particular assets in question are
also not to the point.
- The
character of the "rights" conferred by the PAAT Act as being only in the nature
of the general capacity to contract is confirmed by reference to
the purposes of the PAAT Act. At least one purpose of the PAAT Act was
to authorise the Treasurer to deal with the State's ports assets notwithstanding
the restrictions on such dealings imposed by
the SOC Act. Prior to the
passage of the PAAT Act, the State's ports assets were vested in
SOCs.[139] Such
corporations are subject to ss 20X and 20Y of the SOC Act, which impose
substantial limitations on the disposal of assets by
SOCs. The Explanatory
Note explained that the object of the PAAT Act was to "authorise and facilitate
the transfer to the private sector of the State's ports assets at Port
Botany and Port
Kembla".[140] The
PAAT Act was intended to remove the constraints that would otherwise have
applied to the transfer of the ports assets under the SOC Act and
to
provide for functional and logistical matters relating to the ports' sale. That
purpose is confirmed by s 25(1) of the PAAT Act, which provides that the
PAAT Act will override the SOC Act, and any provision of the constitution of a
statutory SOC or its subsidiary.
- It
may be accepted that the PAAT Act might also have been intended to remove any
doubt as to the authority of the Treasurer to enter into the authorised
transactions.
The Executive Government of a State has undoubted capacity to make
a contract "in the ordinary course of administering a recognized
part of
the government of the
State".[141] Whether that
capacity extends to the making of contracts for the privatisation of significant
State assets is unnecessary to resolve
for the purposes of this proceeding. What
is important is that, whether or not statutory authority was required to effect
the transactions,
the nature of the freedom, liberty or capacity conferred
by the PAAT Act was essentially the same as that considered in
Baxter.
- Given
the characterisation of the rights conferred by the PAAT Act as tantamount
to the general freedom of the Executive to contract, there is no basis to
distinguish the rights or interests here
identified from those in Baxter.
As a result, ss 45 and 45DA bound NSW Ports in its dealings with the State.
ACCC's broader submission
- Given
the conclusion reached, consistent with this Court's jurisprudence, it is
both unnecessary and inappropriate to address the
ACCC's contention that
the text of the CCA, when construed in context (including in light of its
object in s 2), requires the conclusion that, except where a State
Parliament has relevantly legislated under s 51(1), the CCA binds
corporations
that contract with a State government and that the presumption of
derivative Crown immunity is wholly rebutted.
Conclusion and
orders
- For
those reasons, the appeal should be allowed, and the cross‑appeals should
be dismissed with costs. The orders made by the
Full Federal Court on
3 April 2025 should be set aside and, in their place, it should be ordered
that:
1. The appeal be allowed.
- The
orders made by the Federal Court of Australia on 3 June 2024 be set
aside.
- In
relation to the answer to question (b) of the separate questions,
the orders made by the Federal Court of Australia on 22 May 2024
be set
aside and, in its place, the answer to question (b) be "No".
- The
respondents pay the appellant's costs of the hearing of the separate
questions and the appeal.
- The
matter be remitted to the primary judge for further determination.
EDELMAN J.
Introduction
- Voltaire
said of the Holy Roman Empire that it was not holy, not Roman, and not an
empire.[142] The
"derivative Crown immunity" at the centre of this appeal is not derivative, not
an immunity, and not concerned with a single
Crown. The principal question on
this appeal, like in all cases in which a defence to breach of a statutory law
is said to be "Crown
immunity" or "derivative Crown immunity", should simply be
whether the statutory law was intended by Parliament to affect a body
politic.
- The
historical approach to that question of statutory interpretation involved a
strong presumption that a law would not apply to
circumstances where "the Crown
and its property" are "prejudicially
affected".[143] This
presumption was deployed to require great clarity before a law would be applied
to adversely affect legal relations (impose
duties or liabilities upon, or
impair rights, privileges, powers, or immunities) of a body politic, including
in the actions of its
Executive officers or agents. That anomalous presumption,
inconsistent with Diceyan precepts of equality, was substantially weakened
in
Australia for legislation enacted after 20 June
1990.[144] The legislation
in question on this appeal was enacted in
1974[145]—renamed as
the Competition and Consumer Act 2010 (Cth) ("the CCA")—and,
although that legislation was amended after 20 June 1990, the relevant
amendments were premised upon
the continued application of the stronger form of
the presumption.
- The
circumstances for the application of the presumption in this case concern the
duties imposed upon the first to third respondents
(collectively "NSW Ports") by
ss 45 and 45DA of the CCA. Duties provided for in those sections were
said to have been contravened by NSW Ports relevantly by provisions in deeds
called
Port Commitment Deeds ("PCDs") with the fourth respondent, the State of
New South Wales ("the State"), concerning the privatisation
of Port Botany, Port
Kembla and the Port of Newcastle. Those provisions required the State to pay
compensation to the operators of
Port Botany and Port Kembla in certain
circumstances including where those two privatised ports were not at full
capacity for import
and export of containers and container volumes beyond a
threshold had been diverted from those two ports to the Port of Newcastle.
- Since
the State was not acting in the course of carrying on a business within s 2B of
the CCA, the presumption has the effect that the State was not subject to the
duties in ss 45 and 45DA of the CCA. But ss 45 and 45DA apply to the
corporations collectively described as NSW Ports. Those corporations are not the
State,[146] and the
application of ss 45 and 45DA to NSW Ports does not adversely affect any of the
legal relations of the State. The State remains at liberty to enter and act upon
any consensual dealing (a contractual agreement, or an arrangement, or an
understanding[147]) which
contains provisions contrary to ss 45 and 45DA, even if NSW Ports are not at
such liberty, and even if the consequences of entry into such an agreement with
NSW Ports is that those
provisions would be invalid and either they would be
severed or the agreement would be invalid. The contrary conclusion of the Full
Court of the Federal Court of Australia was wrong. The appeal must be
allowed.
Background and anterior issues
- The
background and legislative provisions are set out in detail in the reasons of
Gordon, Gleeson and Beech-Jones JJ. NSW Ports entered
PCDs with the State,
and allegedly reached an understanding with the State, which were alleged to
have been in contravention of the
CCA. Two proceedings were commenced in the
Federal Court of Australia against NSW Ports. The first was by the Australian
Competition
and Consumer Commission ("the ACCC"). The second was by Mayfield
Development Corporation Pty Ltd ("Mayfield"). Mayfield's proceeding
was stayed
pending determination of the ACCC proceeding. Mayfield was granted leave to
intervene in an appeal in the ACCC proceeding.
- In
the ACCC proceeding, NSW Ports succeeded in relation to "derivative Crown
immunity" at first instance (Jagot J) and on appeal
(Allsop CJ, Yates J
agreeing; Beach J dissenting). In the subsequent Mayfield proceeding, a separate
question was posed which asked
whether "derivative Crown immunity" of NSW Ports
was a complete answer to Mayfield's claims. The primary judge (McElwaine J)
followed
the majority of the Full Court of the Federal Court in the ACCC
proceeding, as he was bound to do. On appeal, a differently constituted
Full
Court (Lee, Colvin and Stewart JJ) held that the majority in the appeal in the
ACCC proceeding was not plainly wrong or, in
more appropriate language, that
there was no compelling reason to depart from the decision of the majority in
the ACCC appeal.[148] This
appeal is from that decision. And in this appeal, the ACCC was granted leave to
intervene in this Court.
- The
basis for the findings of "derivative Crown immunity" was essentially that
otherwise the application of the CCA to NSW Ports
would have the effect of
removing the capacity of the State to enter those transactions under the
Ports Assets (Authorised Transactions) Act 2012 (NSW) ("the PAAT
Act").[149] Subject to
various limitations, the PAAT Act authorises "the transfer of ports assets to
the private sector or to any public sector
agency".[150] Section 6 of
the PAAT Act provides that the Treasurer of the State "has and may exercise all
such functions as are necessary or convenient for the purposes
of an authorised
transaction". Section 7(1) of the PAAT Act provides that "[a]n authorised
transaction is to be effected as directed by the Treasurer and can be effected
in any manner considered
appropriate by the Treasurer", and s 7(2) provides that
"[t]here are no limitations as to the nature of the transactions or arrangements
that can be entered into or used for
the purposes of an authorised
transaction".
-
Separately from the issue of "derivative Crown immunity", in notices of
contention filed by NSW Ports and the State in this Court,
anterior contentions
were raised concerning whether the appellant, Mayfield, is precluded from
raising this central issue or bringing
this proceeding. For the reasons given by
Gordon, Gleeson and Beech-Jones JJ, the anterior contentions must be
dismissed. Mayfield
is not precluded from bringing this proceeding by rules of
issue estoppel or abuse of process, and the deed of settlement and release
between Mayfield, the State, and others provided no complete defence or bar to
the Mayfield proceeding. Although the anterior issues
were expressed in terms
that appeared to include res judicata and cause of action (claim)
estoppel, those doctrines were not relied upon before the primary judge by NSW
Ports and the State in
a separate question raised in the Mayfield
proceeding.[151] Even
putting aside other
difficulties,[152] in
circumstances where Mayfield was only an intervener in the appeal in the ACCC
proceeding,[153] there
could be no merger of Mayfield's rights into the judgment in the ACCC proceeding
or any claim estoppel against
Mayfield.[154]
"Derivative
Crown immunity"
Misnomer
- The
subject of the "immunity" in this appeal is commonly described by the use of the
metaphor of a Crown. That description, although
often harmless, is imprecise and
a "defective
conception".[155] The
metaphor is sometimes used to mean only the Executive Government of a body
politic such as a State or Territory of Australia
or the Commonwealth of
Australia. In other cases, it is used to describe "those rights, privileges or
immunities identified with
the royal
prerogative".[156] In other
cases the metaphor is used to mean the body politic of a State or Territory or
the Commonwealth in its capacity as the holder
of rights. In the case of "Crown
immunity" and "derivative Crown immunity", the metaphor extends to all three
usages.
- As
to the "immunity" of the Crown, a person who has an immunity has a freedom from
another's power to alter the person's legal
rights.[157] By contrast, a
person who has a privilege has a special freedom from another's right in
particular
circumstances.[158] A
person with a privilege to do something is, for particular reasons, not subject
to the duty owed by others not to do that thing.
Historically, some references
to a "Crown immunity" might have been better understood as references to a
privilege of members of
the Executive of a body politic. In other words, the
reference to a "Crown immunity" has been used to mean that the Executive of
a
body politic had a freedom from a statutory duty not to act (or to act) in a
particular way.[159] But
some of the historical, and contrived, reasons for the privilege, such as the
asserted difficulty of the "Crown" imposing a fine
upon itself for some unlawful
action,[160] may have
contributed to the view that members of the Executive of a body politic were
subject to a duty and merely immune from liability
for breach.
- The
"derivative Crown immunity" of a person is not "derived" from the "immunity or
privilege of the
Crown":[161] "the immunity
of the Crown can never inure for the benefit of a
subject".[162] The mistake
arises from the colloquial description of a person being "immune" whenever the
person's action is justified or the person
is not subject to a duty in
particular
circumstances.[163]
Stripped of the nomenclature of "derivative" and "immunity", the issue is simply
one of a presumption that legislation does not apply
where its operation would
impair the legal relations of a body politic. As the State rightly submitted,
the "canonical description"
of the "derivative Crown immunity" is that of Kitto
J in Wynyard Investments Pty Ltd v Commissioner for Railways
(NSW),[164] who
referred to "cases in which a statutory provision not binding on the Crown must
be denied an incidence upon a subject of the
Crown because that incidence would
be in legal effect upon the Crown".
The true nature of (misnamed)
"derivative Crown immunity"
- In
Wynyard,[165]
as endorsed in Australian Competition and Consumer Commission v Baxter
Healthcare Pty
Ltd,[166] a taxonomy
was provided of the classes of case of the "derivative Crown immunity" in which
a law might be denied an application upon
a private person to ensure that
particular rights, privileges, powers, or immunities of a body politic are not
affected by that law.
The main category of these cases concerned a strong
presumption that "it is the duty of the Courts so to construe the Acts that the
Crown and its property are in no way prejudicially affected by
them".[167] This strong
presumption was described in Wynyard and Baxter as concerned with
statutory provisions that would "adversely affect some proprietary right or
interest of the Crown, legal[,] equitable
or statutory" if applied.
- This
presumption is a narrower but stronger form of the general presumption that
legislation does not adversely affect rights and
freedoms,[168] which is a
presumption that applies generally with variable force depending upon the nature
of the rights and freedoms and the extent
to which they are
affected.[169] It is a
narrower form of that presumption because it applies only to the proprietary
rights and interests of a body politic. It is
a stronger form of the presumption
because it applies even where legislation is plainly intended to have an adverse
effect upon proprietary
rights or interests generally.
- Dicey's
principle of equality was concerned with the equal treatment of all persons
under the law without "exemption of officials
or others from the duty of
obedience to the law".[170]
That principle is particularly evocative when dealing with natural persons. But
it is a principle that should apply also to artificial
legal persons, including
bodies corporate and bodies politic. If there is no substantial and relevant
difference between conduct
that is performed by a natural person, body
corporate, or body politic then all should be treated by the law in the same
way. Statutory
provisions reflect this principle of equality as a principle of
interpretation of legislation and of the development of the common
law.[171] It is a principle
that seeks to provide for equality, as far as
possible,[172] between
Commonwealth and State bodies politic (among themselves), and between them and
subjects, as between subject and
subject.[173]
- The
presumptions of "Crown immunity" and "derivative Crown immunity" are anomalous
reversals of the Diceyan precept of equality.
They are presumptions that
legislation will not impair the legal relations (rights, privileges, powers, and
immunities) of a body
politic or impose duties or liabilities on a body politic.
In so far as those presumptions were based upon reasonable expectations
as to
the meaning of
legislation,[174] it is
hard to see how they can be justified at all anymore. Although, as will be seen,
their force has been generally weakened, and
although they apply with different
force in different
circumstances,[175] the
time may come when it will be necessary to consider whether the remaining
operation of those presumptions should be abolished,
at least
prospectively.
Bradken, NT Power Generation and Baxter and
"derivative Crown immunity" in the CCA
- In
Bradken Consolidated Ltd v Broken Hill Proprietary Co
Ltd[176] it was
held that the predecessor legislation to the
CCA[177] did not bind a
body politic of a State. That conclusion was reached in part by application of
what was then understood to be a strong
presumption that legislation would not
bind any body politic unless there were express words or there was a necessary
intention to
do so.[178]
Nevertheless, Mason and Jacobs JJ referred to s 2A of that legislation, which
broadly provided that the Act bound the body politic
of the Commonwealth in so
far as that body politic carried on a business. Mason and Jacobs JJ
added:[179]
"Even if there were no presumption of an intention not to bind the Crown in
right of a State but likewise no presumption of an intention
to bind that Crown,
so that it was necessary to examine the particular nature of the provisions made
by the statute, the expression
of an intention to bind the Crown in right of the
Commonwealth and the absence of a like expression in respect of the Crown in
right
of the States would as a matter of construction lead to the conclusion
that the Crown in right of the States was not intended to
be bound."
- After
Bradken, a large step was taken by this Court in Bropho v Western
Australia.[180] The
decision in Bropho rejected the strong form of that presumption but, as
the presumption was a matter of practice not precedent, this Court confined
the
rejection of the strong form of the presumption to prospective legislation only,
so as not to "overturn the settled construction
of particular existing
legislation".[181] In any
event, as six members of this Court later reiterated, developing the point made
by Mason and Jacobs JJ, the maxim expressio unius est exclusio alterius
(an ordinary language convention that the express mention of something might
reveal an intention to exclude a broader denotation)
meant that the express
provision in s 2A of the predecessor legislation to the CCA had the effect
that, although a body politic would
otherwise have been a "person" within the
relevant provision,[182]
the body politic of the Commonwealth was bound only in so far as it carried on a
business.[183]
- In
1995, five years after Bropho, the Commonwealth Parliament enacted
ss 2B and 2C of the predecessor legislation to the CCA, which broadly, and
relevantly, provided
that Part IV of the Act bound the bodies politic of States
and Territories when carrying on a business. Those sections were directed
towards ensuring
that "the prohibitions against anti-competitive conduct can be
applied to all businesses in
Australia".[184] The States
and Territories were therefore intended to be placed in broadly the same
position as the
Commonwealth.[185] There is
no basis to find any intention otherwise to change the operation of the
presumption of "Crown immunity" as it had been articulated
in
Bradken.
- In
light of the retrospective preservation by Bropho of the strong form of
presumptions of "Crown immunity" and "derivative Crown immunity", the issue
arose in 2004, again in relation
to the predecessor legislation to the CCA,
concerning the application of laws to persons in a manner that affected the
interests
of the Northern Territory. In NT Power Generation Pty Ltd v Power
and Water
Authority,[186] a party
called Gasgo Pty Ltd, which was not acting as the Northern Territory (ie was not
an "emanation" of the
Territory)[187] and was not
found to have entered any relevant agreement or understanding with the Northern
Territory,[188] argued that
if s 46 of the predecessor legislation to the CCA applied to prevent it from
exercising a pre-emptive contractual right
to purchase gas, then s 46 would
adversely affect the security of the gas supply of the Northern
Territory.[189]
- Although
describing the issue as one of "derivative Crown immunity", the four members of
this Court in the majority in NT Power Generation explained that "[a]
more accurate way of putting the issue" was "to ask whether s 46 ... caused
'some impairment of the existing legal
situation of' the Northern Territory
Government in this
case".[190] Their Honours
held that the only interest of the body politic of the Northern Territory that
was affected was a financial interest,
and it was not established that there was
any basis to extend the "immunity beyond any point the Australian authorities
have so far
reached" to financial interests
generally.[191]
- In
legal terms, the asserted effect of s 46 was not merely to affect the finances
of the body politic of the Northern Territory but
also to impair the liberty of
action of the body politic of the Northern Territory, through the Executive
Government of the Northern
Territory, in relation to its gas supply. By treating
that liberty of action as not falling within "derivative Crown immunity", the
majority of this Court effectively confined the legal relations to which that
legislative presumption would apply, at least where
the liberty of the body
politic was indirectly affected rather than directly affected.
- The
same approach was taken by this Court in Baxter. The issue in that case
was whether a manufacturer of medical products was bound by ss 46 and 47 of the
predecessor legislation to
the CCA in its entry into contracts with State and
Territory purchasing authorities which were not operating in the course of
carrying
on a business. The joint judgment described the relevant presumption as
being that "since the [legislation which is now the CCA]
does not bind the Crown
in right of a State or Territory when it is not carrying on a business, then,
save to the extent to which
a contrary intention appears, the [legislation which
is now the CCA] will not be read so as to divest the Crown of proprietary,
contractual
or other legal rights or
interests".[192]
- The
joint judgment considered that the State and Territory purchasing authorities
were not bound by ss 46 and 47 and therefore were
at liberty to enter contracts
that would otherwise have contravened those
provisions.[193] But the
presumption did not insulate from liability any person who entered such a
contract with the State and Territory purchasing
authorities. It was
insufficient that such liability would, as a matter merely of effect or
consequence, reduce or impair the extent
to which contracts entered by a State
or Territory would have valid legal effect. The legal relations of the State
were unaffected.
As the joint judgment in this Court
said:[194]
"There were references in the argument for the respondents to the 'right' of
States to enter into contracts, where what was in contemplation
would be
described more accurately as a freedom. There is also a risk of confusing
governmental, commercial, or even political interests
with legal, equitable or
statutory rights and interests. From one point of view, it may be in the
interests of a government for it,
and anyone who deals with it, to have complete
freedom to contract, but in reality no one has such freedom."
This appeal
- The
relevant sections of the CCA are ss 45 and 45DA, which proscribe particular
conduct and terms of particular consensual dealings
(contractual agreements,
arrangements, or understandings) by "a corporation" and "a person". The State is
not "a corporation" but,
as a body politic, it is "a
person".[195] Nevertheless,
the prospective-only effect of the change in force of the presumption in
Bropho is such that the "Crown immunity" of the State, while it is not
carrying on a business, prevents s 45DA being binding on the State.
The State is
not prohibited from conduct, including entry into transactions, that would
otherwise contravene s 45DA. The agreement
to the compensation provisions
in the PCDs was not a contravention by the State.
- The
application of "Crown immunity" (described in the even more problematic language
of "derivative Crown immunity") was sought to
be confined on this appeal by two
different submissions. The first, broad, submission was made by the ACCC. The
ACCC argued that,
subject to s 51(1) of the CCA, ss 45 and 45DA evince an
intention to exclude "derivative Crown immunity". The ACCC relied heavily
upon
the exception in s 51(1) as supporting this Parliamentary intention. Section
51(1) requires that various matters be disregarded
"[i]n deciding whether a
person has contravened [Pt IV of the CCA]". In relation to States, and in broad
terms, those matters include
anything done for which specification and specific
authorisation are made and given by an Act of a State Parliament, or regulations
under such an Act, which expressly refer to the
CCA.[196]
- The
Full Court in this proceeding followed the reasoning of Allsop CJ, that s 51(1)
of the CCA was a provision by which a Parliament
may authorise particular
conduct that would otherwise contravene provisions of Pt IV of the CCA and
therefore s 51(1) was a provision which assumed contravention, requiring the
proper ascertainment of Crown immunity
as an anterior
issue.[197] Of course, the
issues of "Crown immunity" and "derivative Crown immunity" are matters of
interpretation which cannot proceed by ignoring
s 51, which is part of the
context in which that interpretation occurs. The point being made by Allsop CJ
was that, since s 51(1)
was intended to confer a general power upon
Parliaments to make specific exemptions from the operation of many of the
provisions
of Pt IV of the CCA, s 51 says little about the scope of operation of
the provisions from which it is conferred upon Parliaments a power of
exemption.
- The
point made by Allsop CJ is further reinforced by the fact that the broad outline
of s 51 has been present in Part IV since the inception of the predecessor
legislation to the CCA in
1974,[198] at a time when a
strong presumption of "Crown immunity" prevailed and before ss 2B and 2C had
been introduced. Since the relevant
provisions of Pt IV of the CCA existed
before the decision in Bropho, and since the amendments in ss 2B and 2C
were based upon an assumption of the earlier prevailing position, the
prospective-only
effect of Bropho in changing the force of the
presumption precludes a conclusion that the Commonwealth Parliament intended
generally to abolish "Crown
immunity" or "derivative Crown immunity". Indeed,
the premise of the line of decisions from Bradken to Baxter is
that the Commonwealth Parliament did not.
- The
second, narrow, submission was made by Mayfield (and supported by the ACCC).
Mayfield pointed to the history of the presumption
of "derivative Crown
immunity" and submitted, in effect, that the presumption should apply only to
circumstances where a legal relation
of the body politic is impaired. In other
words, the presumption of legislative intention described above, that the "Crown
and its
property are in no way prejudicially affected", should not be understood
literally. Rather, it should be applied only to laws which
would adversely
affect the legal relations of the body politic (its rights, privileges, powers,
and immunities) or impose legal duties
or liabilities on the body politic. That
submission should be accepted. It is, in effect, the approach that was taken in
NT Power Generation and in Baxter.
- The
contrary reasoning of Allsop CJ in the ACCC proceeding, which was adopted by the
Full Court in this
proceeding,[199] was that
NSW Ports were not bound by ss 45 and 45DA because the operation of those
sections upon NSW Ports could result in the "impairment
of the existing legal
situation of the Executive or Crown". That impairment would arise because the
binding effect of the CCA on
NSW Ports in respect of any contractual provision
which breached ss 45 and 45DA would otherwise be that any provision of the PCDs
which contravened those sections would be severed from the
PCDs.[200]
- Allsop
CJ was, with respect, correct that the effect of ss 45 and 45DA of the CCA upon
NSW Ports was to cause the impairment of the
existing legal situation of the
body politic of the State in that such contravening provisions of the PCDs would
be invalid. But
any such impairment was a consequential effect of the operation
of ss 45 and 45DA on NSW Ports. It did not arise from any impairment
of a legal
relation of the State. The State itself remained at liberty to enter the
PCDs.
Conclusion
- The
appeal should be allowed. The consequence of allowing the appeal is that the
cross-appeals by NSW Ports and the State from the
costs orders in the Full Court
are inutile and must be dismissed. Orders should be made as proposed by Gordon,
Gleeson and Beech-Jones
JJ.
[1] Mayfield Development
Corporation Pty Ltd v NSW Ports Operations Hold Co Pty Ltd [No 4] [2024] FCA
538.
[2] Mayfield Development
Corporation Pty Ltd v NSW Ports Operations Hold Co Pty Ltd [2025] FCAFC 43; (2025) 308 FCR
153.
[3] [2023] FCAFC 16; (2023) 296 FCR 364.
[4] Mayfield Development
Corporation Pty Ltd v NSW Ports Operations Hold Co Pty Ltd [2025] FCAFC 43; (2025) 308 FCR
153 at 162 [39], 167 [69]. See Hill v Zuda Pty Ltd [2022] HCA 21; (2022) 275 CLR 24 at
35 [25].
[5] Australian Competition and
Consumer Commission v NSW Ports Operations Hold Co Pty Ltd [2021] FCA 720 at
[355]- [406].
[6] Australian Competition and
Consumer Commission v NSW Ports Operations Hold Co Pty Ltd [2023] FCAFC 16; (2023) 296 FCR
364 at 469-472 [404]- [415].
[7] (2004) 219 CLR 90 at 151
[166].
[8] (2007) 232 CLR 1 at 12 [1].
[9] [1990] HCA 24; (1990) 171 CLR 1.
[10] NT Power Generation Pty Ltd
v Power and Water Authority (2004) 219 CLR 90 at 151 [166], 152 [169];
Australian Competition and Consumer Commission v Baxter Healthcare Pty Ltd
(2007) 232 CLR 1 at 27 [40].
[11] See Chief Executive Officer,
Aboriginal Areas Protection Authority v Director of National Parks (2024)
281 CLR 525 at 534-535 [9]-[12].
[12] Australian Competition and
Consumer Commission v Baxter Healthcare Pty Ltd (2007) 232 CLR 1 at 28 [42],
quoting Bropho v Western Australia [1990] HCA 24; (1990) 171 CLR 1 at 28.
[13] NT Power Generation Pty Ltd
v Power and Water Authority (2004) 219 CLR 90 at 152 [170], quoting
Wynyard Investments Pty Ltd v Commissioner for Railways (NSW) [1955] HCA 72; (1955) 93
CLR 376 at 393.
[14] NT Power Generation Pty Ltd
v Power and Water Authority (2004) 219 CLR 90 at 152 [170]; Australian
Competition and Consumer Commission v Baxter Healthcare Pty Ltd (2007) 232
CLR 1 at 35 [62].
[15] See Mayfield Development
Corporation Pty Ltd v NSW Ports Operations Hold Co Pty Ltd [2025] FCAFC 43; (2025) 308 FCR
153 at 158 [22].
[16] NT Power Generation Pty Ltd
v Power and Water Authority (2004) 219 CLR 90 at 152 [170]; Australian
Competition and Consumer Commission v Baxter Healthcare Pty Ltd (2007) 232
CLR 1 at 35 [62].
[17] Australian Competition and
Consumer Commission v Baxter Healthcare Pty Ltd (2007) 232 CLR 1 at 34
[58].
[18] Trade Practices Act 1974
(Cth), renamed by item 2 of Sch 5 to the Trade Practices Amendment
(Australian Consumer Law) Act (No 2) 2010 (Cth). The term "CCA" is used in
these reasons also to refer to the legislation in this earlier form.
[19] (1979) 145 CLR 107.
[20] Australian Competition and
Consumer Commission v Baxter Healthcare Pty Ltd (2007) 232 CLR 1 at 28
[43].
[21] See Bass v Permanent Trustee
Co Ltd [1999] HCA 9; (1999) 198 CLR 334 at 354 [41]- [42].
[22] (2004) 219 CLR 90 at 152
[170].
[23] (2007) 232 CLR 1 at 35 [62]
(emphasis omitted).
[24] Australian Competition and
Consumer Commission v Baxter Healthcare Pty Ltd (2007) 232 CLR 1 at 36 [66];
see also at 36 [64]-[65].
[25] (2004) 219 CLR 90 at 152-159
[170]-[190].
[26] (2007) 232 CLR 1 at 35 [60], 37
[68].
[27] Competition Policy Reform
Act 1995 (Cth).
[28] Re Ku-ring-gai Co-operative
Building Society (No 12) Ltd [1978] FCA 50; (1978) 22 ALR 621 at 635.
[29] [2023] FCAFC 16; (2023) 296 FCR 364 at 468
[401]- [402].
[30] [2023] FCAFC 16; (2023) 296 FCR 364 at 469
[404].
[31] [2023] FCAFC 16; (2023) 296 FCR 364 at 471
[412].
[32] [2023] FCAFC 16; (2023) 296 FCR 364 at 469-471
[405]- [412].
[33] [2023] FCAFC 16; (2023) 296 FCR 364 at 471
[412].
[34] [2023] FCAFC 16; (2023) 296 FCR 364 at 494
[589], [592], 498 [620].
[35] Port of Portland Pty Ltd v
Victoria [2010] HCA 44; (2010) 242 CLR 348 at 359 [13], quoting Cam and Sons Pty Ltd v
Ramsay [1960] HCA 82; (1960) 104 CLR 247 at 258.
[36] A v Hayden [1984] HCA 67; (1984) 156
CLR 532 at 580.
[37] Coco v The Queen [1994] HCA 15; (1994)
179 CLR 427 at 437.
[38] The first to third respondents
comprise NSW Port Operations Hold Co Pty Ltd, Port Botany Operations Pty Ltd and
Port Kembla Operations
Pty Ltd.
[39] Australian Competition and
Consumer Commission v NSW Ports Operations Hold Co Pty Ltd ("ACCC
PJ") [2021] FCA 720 at [1].
[40] ACCC PJ [2021] FCA 720 at
[9], upheld on appeal in Australian Competition and Consumer Commission v NSW
Ports Operations Hold Co Pty Ltd ("ACCC Appeal") [2023] FCAFC 16; (2023) 296
FCR 364 at 464-472 [386]- [415], 473 [427].
[41] ACCC Appeal [2023] FCAFC 16; (2023) 296
FCR 364 at 472 [416].
[42] ACCC Appeal [2023] FCAFC 16; (2023)
296 FCR 364 at 464-472 [386]- [415], 473 [427], cf 487-498 [533]-[625].
[43] SOC Act, ss 20X and
20Y.
[44] As enacted, the PAAT Act only
applied to Port Botany and Port Kembla. It was amended in 2013 to apply to the
Port of Newcastle: Ports Assets (Authorised Transactions) Amendment Act
2013 (NSW).
[45] ACCC PJ [2021] FCA 720
at [1].
[46] ACCC PJ [2021] FCA 720
at [350], [354].
[47] ACCC PJ [2021] FCA 720
at [355]- [423], especially at [369], [395]-[396], [402]‑[406],
[418]-[419], [423].
[48] ACCC Appeal [2023] FCAFC 16; (2023) 296
FCR 364 at 368 [9], 473 [427], 512 [721].
[49] ACCC Appeal [2023] FCAFC 16; (2023) 296
FCR 364 at 451 [337]- [338], 473 [427], 484 [514].
[50] ACCC Appeal [2023] FCAFC 16; (2023) 296
FCR 364 at 471 [412]; see also 464-472 [386]-[415], 473 [427].
[51] (2007) 232 CLR 1.
[52] ACCC Appeal [2023] FCAFC 16; (2023) 296
FCR 364 at 490-498 [566]- [624].
[53] ACCC Appeal [2023] FCAFC 16; (2023) 296
FCR 364 at 493-497 [586]- [616], especially at 494-495 [592]-[595].
[54] SST Consulting Services Pty
Ltd v Rieson [2006] HCA 31; (2006) 225 CLR 516 at 533 [52].
[55] See SST Consulting Services
[2006] HCA 31; (2006) 225 CLR 516 at 527 [32].
[56] cf CCA, s 87(2), (3); see
SST Consulting Services [2006] HCA 31; (2006) 225 CLR 516 at 527 [33].
[57] Tomlinson v Ramsey Food
Processing Pty Ltd [2015] HCA 28; (2015) 256 CLR 507 at 516 [21].
[58] Tomlinson [2015] HCA 28; (2015) 256 CLR
507 at 517 [22].
[59] Blair v Curran [1939] HCA 23; (1939) 62
CLR 464 at 531, cited in Tomlinson [2015] HCA 28; (2015) 256 CLR 507 at 517 [22];
Clayton v Bant (2020) 272 CLR 1 at 20 [51].
[60] Tomlinson [2015] HCA 28; (2015) 256 CLR
507 at 523 [39].
[61] See Australian Securities
Commission v Marlborough Gold Mines Ltd [1993] HCA 15; (1993) 177 CLR 485 at 505.
[62] Tebbutt v Haynes [1981]
2 All ER 238 at 244; see also 242.
[63] Tomlinson [2015] HCA 28; (2015) 256 CLR
507 at 524 [39].
[64] Rule 36.32, Note 1.
[65] [1993] HCA 15; (1993) 177 CLR 485 at 505.
[66] See Federal Court Rules,
r 36.32(2)(b).
[67] Tomlinson [2015] HCA 28; (2015) 256 CLR
507 at 524 [39].
[68] Tomlinson [2015] HCA 28; (2015) 256 CLR
507 at 518-519 [24]- [25].
[69] [1994] HCA 42; (1994) 181 CLR 251 at 256.
[70] O'Shane v Harbour Radio Pty
Ltd [2013] NSWCA 315; (2013) 85 NSWLR 698 at 722-723 [99]- [102].
[71] Tomlinson [2015] HCA 28; (2015) 256 CLR
507 at 519 [26].
[72] Tomlinson [2015] HCA 28; (2015) 256 CLR
507 at 519 [26].
[73] See Federal Court Rules,
r 36.32(2)(a).
[74] See, eg, CCA, s 83.
[75] Mayfield Development
Corporation Pty Ltd v NSW Ports Operations Hold Co Pty Ltd [2020] FCA
260.
[76] Mayfield Development
Corporation Pty Ltd v NSW Ports Operations Hold Co Pty Ltd [2020] FCA 260 at
[16(5)].
[77] Baxter (2007) 232 CLR 1
at 27-28 [41]-[42], quoting Bropho v Western Australia [1990] HCA 24; (1990) 171
CLR 1 at 23-24, 28. See also Federal Commissioner of Taxation v Tomaras
[2018] HCA 62; (2018) 265 CLR 434 at 439-440 [2], 443-444 [18], 451-453 [52]-[54],
468‑470 [104]-[109]; Chief Executive Officer, Aboriginal Areas
Protection Authority v Director of National Parks ("Gunlom Falls")
(2024) 281 CLR 525 at 534-535 [11], 543 [41].
[78] [1990] HCA 24; (1990) 171 CLR 1 at 22.
[79] Baxter (2007) 232 CLR 1
at 27 [40], citing Bropho [1990] HCA 24; (1990) 171 CLR 1 at 15. See also Gunlom
Falls (2024) 281 CLR 525 at 534-535 [11], 543 [42].
[80] Bropho [1990] HCA 24; (1990) 171
CLR 1 at 23. See also Baxter (2007) 232 CLR 1 at 27 [41].
[81] Bropho [1990] HCA 24; (1990) 171 CLR 1
at 23. See also Re Residential Tenancies Tribunal (NSW); Ex parte Defence
Housing Authority (1997) 190 CLR 410 at 445.
[82] Bropho [1990] HCA 24; (1990) 171 CLR 1
at 28.
[83] Wynyard Investments Pty Ltd
v Commissioner for Railways (NSW) [1955] HCA 72; (1955) 93 CLR 376 at 393. See also
Baxter (2007) 232 CLR 1 at 34-35 [58]-[59].
[84] Baxter (2007) 232 CLR 1
at 34 [58].
[85] Baxter (2007) 232 CLR 1
at 35-36 [62].
[86] Baxter (2007) 232 CLR 1
at 27 [40], 34 [58].
[87] [1955] HCA 72; (1955) 93 CLR 376 at
393-394.
[88] Wynyard [1955] HCA 72; (1955) 93 CLR
376 at 394.
[89] Wynyard [1955] HCA 72; (1955) 93 CLR
376 at 395, quoting Victorian Railways Commissioners v Herbert [1949] VicLawRp 7; [1949] VLR
211 at 213-214.
[90] [1955] HCA 72; (1955) 93 CLR 376 at 396.
[91] [1999] HCA 9; (1999) 198 CLR 334 at 354
[42].
[92] (2004) 219 CLR 90 at 152
[170].
[93] NT Power (2004) 219 CLR
90 at 154 [174].
[94] (1979) 145 CLR 107 at 137.
[95] (2004) 219 CLR 90 at 153-156
[173]-[181].
[96] (2007) 232 CLR 1 at 35 [62]
(emphasis in original).
[97] Baxter (2007) 232 CLR 1
at 36 [64], 37 [70].
[98] Baxter (2007) 232 CLR 1
at 35 [60].
[99] (2007) 232 CLR 1 at 35
[60].
[100] Baxter (2007) 232 CLR
1 at 35 [60].
[101] Emphasis in original.
[102] Baxter (2007) 232 CLR
1 at 35 [60].
[103] CCA, s 2.
[104] In its current form,
s 45DA(1) is in relevantly similar terms. The Competition and
Consumer Amendment (Competition Policy Review) Act 2017 (Cth) amended
Note 1 to s 45DA(1) in a manner not presently material.
[105] CCA, s 2A(1).
[106] CCA, s 2B(1)(a).
[107] Australia, House of
Representatives, Parliamentary Debates (Hansard), 30 June 1995 at 2794.
See also NT Power (2004) 219 CLR 90 at 116 [66].
[108] Section 51(1) is subject to
a number of limitations in s 51(1C), including that the authorisation
by statute or regulation under
s 51(1) requires the authorising provision
to expressly refer to the CCA: s 51(1C)(a).
[109] Baxter (2007) 232 CLR
1 at 28 [43].
[110] (2007) 232 CLR 1 at 13-14
[4]-[9], 30 [49], 39-40 [76].
[111] Baxter (2007) 232 CLR
1 at 35 [62] (emphasis in original).
[112] (2007) 232 CLR 1 at 36
[64].
[113] Baxter (2007) 232 CLR
1 at 36 [64].
[114] In identical terms to
s 2 of the CCA.
[115] Baxter (2007) 232 CLR
1 at 36 [64].
[116] In the same terms as
s 51(1) of the CCA.
[117] Baxter (2007) 232 CLR
1 at 36 [64]; see also 19‑20 [21].
[118] Baxter (2007) 232 CLR
1 at 30 [48].
[119] Baxter (2007) 232 CLR
1 at 36 [65].
[120] Baxter (2007) 232 CLR
1 at 36 [66].
[121] Baxter (2007) 232 CLR
1 at 36-37 [67]-[68].
[122] Baxter (2007) 232 CLR
1 at 37 [68].
[123] Baxter (2007) 232 CLR
1 at 37 [70]; see also 28 [44].
[124] Baxter (2007) 232 CLR
1 at 37 [70]. See SST Consulting Services [2006] HCA 31; (2006) 225 CLR 516.
Section 4L of the TPA was in relevantly similar terms to s 4L of the
CCA.
[125] (2007) 232 CLR 1 at 39
[74].
[126] (2007) 232 CLR 1 at 23-24
[30]-[32].
[127] Baxter (2007) 232 CLR
1 at 28 [44].
[128] PAAT Act, long title.
[129] PAAT Act, s 4(1).
[130] PAAT Act, s 3
definition of "authorised transaction".
[131] PAAT Act, s 6.
[132] PAAT Act, s 7(1).
[133] PAAT Act, s 7(2).
[134] PAAT Act, ss 8, 10,
11.
[135] PAAT Act, ss 9, 10,
11.
[136] PAAT Act, s 25(1).
[137] PAAT Act, s 25(2).
[138] (2007) 232 CLR 1 at 35 [60],
37 [68].
[139] New South Wales, Ports
Assets (Authorised Transactions) Bill 2012, Explanatory Note at 1.
[140] New South Wales, Ports
Assets (Authorised Transactions) Bill 2012, Explanatory Note at 1.
[141] New South Wales v
Bardolph (1934) 52 CLR 455 at 508. See also Williams v The Commonwealth
[2012] HCA 23; (2012) 248 CLR 156 at 191 [33], 211 [74], 233-234 [139]-[143], 255-257
[208]-[212], 342 [484], 354 [529].
[142] Voltaire, Essay sur
l'histoire générale, et sur les moeurs et l'esprit des nations
(1761), vol 2, ch 66 at 239: "Ce Corps qui s'appellait, & qui s'appelle
encor, le saint Empire Romain, n'était en aucune
maniére, ni
saint, ni Romain, ni Empire".
[143] Wirral Estates Ltd v Shaw
[1932] 2 KB 247 at 263. See also Perry v Eames [1891] 1 Ch 658 at
669-670.
[144] Bropho v Western
Australia [1990] HCA 24; (1990) 171 CLR 1.
[145] Trade Practices Act 1974
(Cth).
[146] Mayfield Development
Corporation Pty Ltd v NSW Ports Operations Hold Co Pty Ltd [2025] FCAFC 43; (2025) 308 FCR
153 at 165 [52].
[147] Australian Competition
and Consumer Commission v J Hutchinson Pty Ltd [2025] HCA 10; (2025) 99 ALJR 695 at 708
[54]; [2025] HCA 10; 422 ALR 236 at 251.
[148] Hill v Zuda Pty Ltd
[2022] HCA 21; (2022) 275 CLR 24 at 34-35 [25]. See Lendlease Corporation Ltd v Pallas
[2025] HCA 19; (2025) 99 ALJR 834 at 863-865 [114]- [118]; [2025] HCA 19; 423 ALR 23 at 58-60.
[149] Mayfield Development
Corporation Pty Ltd v NSW Ports Operations Hold Co Pty Ltd [2025] FCAFC 43; (2025) 308 FCR
153 at 166-167 [64], quoting Australian Competition and Consumer Commission v
NSW Ports Operations Hold Co Pty Ltd [2023] FCAFC 16; (2023) 296 FCR 364 at 471 [412].
[150] PAAT Act, s 4(1).
[151] Mayfield Development
Corporation Pty Ltd v NSW Ports Operations Hold Co Pty Ltd [No 4] [2024] FCA
538 at [46]- [47].
[152] See Zavarco plc v Nasir
[2025] UKSC 5; [2025] AC 738.
[153] Australian Competition
and Consumer Commission v NSW Ports Operations Hold Co Pty Ltd [2023] FCAFC 16; (2023) 296
FCR 364.
[154] Clayton v Bant (2020)
272 CLR 1 at 25 [66]-[67].
[155] Sue v Hill [1999] HCA 30; (1999) 199
CLR 462 at 498 [84], citing Cobbett, "'The Crown' as Representing 'the State'"
(1903) 1 The Commonwealth Law Review 23 at 30.
[156] The Commonwealth v
Western Australia (Mining Act Case) (1999) 196 CLR 392 at 430 [106].
[157] Hohfeld, "Some Fundamental
Legal Conceptions as Applied in Judicial Reasoning" (1913) 23 Yale Law
Journal 16 at 55.
[158] Western Australia v
Manado [2020] HCA 9; (2020) 270 CLR 81 at 114-115 [83]- [84].
[159] Wirral Estates Ltd v Shaw
[1932] 2 KB 247 at 259-260.
[160] See, for instance, Cain v
Doyle [1946] HCA 38; (1946) 72 CLR 409 at 418, 424. Compare Chief Executive Officer,
Aboriginal Areas Protection Authority v Director of National Parks (2024)
281 CLR 525 at 581-582 [157].
[161] Wynyard Investments Pty
Ltd v Commissioner for Railways (NSW) [1955] HCA 72; (1955) 93 CLR 376 at 395, quoting
Victorian Railways Commissioners v Herbert [1949] VicLawRp 7; [1949] VLR 211 at 213-214.
[162] Wynyard Investments Pty
Ltd v Commissioner for Railways (NSW) [1955] HCA 72; (1955) 93 CLR 376 at 395.
[163] See also Queensland v
Stradford (a pseudonym) (2025) 99 ALJR 396; 421 ALR 376.
[164] [1955] HCA 72; (1955) 93 CLR 376 at
393.
[165] [1955] HCA 72; (1955) 93 CLR 376 at
393-394.
[166] (2007) 232 CLR 1 at 34-35
[59].
[167] Wirral Estates Ltd v Shaw
[1932] 2 KB 247 at 263. See also Perry v Eames [1891] 1 Ch 658 at
669-670; Clark v Downes [1931] All ER Rep 157 at 160.
[168] Coco v The Queen
[1994] HCA 15; (1994) 179 CLR 427 at 437.
[169] Mann v Paterson
Constructions Pty Ltd [2019] HCA 32; (2019) 267 CLR 560 at 623 [159]; Stephens v The
Queen [2022] HCA 31; (2022) 273 CLR 635 at 653 [34]; Hurt v The King [2024] HCA 8; (2024) 281 CLR
286 at 325 [106].
[170] Dicey, Lectures
Introductory to the Study of the Law of the Constitution (1885) at 215; see
also at 177-178.
[171] Judiciary Act 1903
(Cth), s 64; Crown Proceedings Act 1988 (NSW), s 5(2).
[172] Austral Pacific Group Ltd
(In liq) v Airservices Australia [2000] HCA 39; (2000) 203 CLR 136 at 144 [16].
[173] See also British American
Tobacco Australia Ltd v Western Australia [2003] HCA 47; (2003) 217 CLR 30 at 63-64
[76].
[174] Stephens v The Queen
[2022] HCA 31; (2022) 273 CLR 635 at 653 [34].
[175] Bropho v Western
Australia [1990] HCA 24; (1990) 171 CLR 1 at 23-24. See Cain v Doyle [1946] HCA 38; (1946) 72 CLR
409; Chief Executive Officer, Aboriginal Areas Protection Authority v
Director of National Parks (2024) 281 CLR 525 at 588-590 [177]-[180],
594-599 [189]-[204].
[176] (1979) 145 CLR 107.
[177] Trade Practices Act
1974 (Cth).
[178] Bradken Consolidated Ltd
v Broken Hill Proprietary Co Ltd (1979) 145 CLR 107 at 123, 129, 135,
140.
[179] Bradken Consolidated Ltd
v Broken Hill Proprietary Co Ltd (1979) 145 CLR 107 at 136.
[180] [1990] HCA 24; (1990) 171 CLR 1.
[181] [1990] HCA 24; (1990) 171 CLR 1 at 22. See
Chief Executive Officer, Aboriginal Areas Protection Authority v Director of
National Parks (2024) 281 CLR 525 at 580-581 [154].
[182] See, now, Acts
Interpretation Act 1901 (Cth), s 2C(1).
[183] Bass v Permanent Trustee
Co Ltd [1999] HCA 9; (1999) 198 CLR 334 at 348-349 [22].
[184] Australia, House of
Representatives, Parliamentary Debates (Hansard), 30 June 1995 at
2794.
[185] Bass v Permanent Trustee
Co Ltd [1999] HCA 9; (1999) 198 CLR 334 at 349 [24].
[186] (2004) 219 CLR 90.
[187] (2004) 219 CLR 90 at 150-151
[164]-[165].
[188] (2004) 219 CLR 90 at 152-153
[171].
[189] (2004) 219 CLR 90 at 147
[158].
[190] (2004) 219 CLR 90 at 152
[170], quoting Wynyard Investments Pty Ltd v Commissioner for Railways
(NSW) [1955] HCA 72; (1955) 93 CLR 376 at 393.
[191] NT Power Generation Pty
Ltd v Power and Water Authority (2004) 219 CLR 90 at 153-154 [173].
[192] Australian Competition
and Consumer Commission v Baxter Healthcare Pty Ltd (2007) 232 CLR 1 at 35
[62] (emphasis in original).
[193] Australian Competition
and Consumer Commission v Baxter Healthcare Pty Ltd (2007) 232 CLR 1 at 30
[49], 39-40 [76].
[194] Australian Competition
and Consumer Commission v Baxter Healthcare Pty Ltd (2007) 232 CLR 1 at 35
[60].
[195] Interpretation Act 1987
(NSW), Sch 4 (definition of "person"). See also Crown Proceedings Act
1988 (NSW), s 5(1).
[196] CCA, ss 51(1)(b), 51(1C).
[197] Mayfield Development
Corporation Pty Ltd v NSW Ports Operations Hold Co Pty Ltd [2025] FCAFC 43; (2025) 308 FCR
153 at 165-166 [56]- [58], including a quote from Australian Competition and
Consumer Commission v NSW Ports Operations Hold Co Pty Ltd [2023] FCAFC 16; (2023) 296 FCR
364 at 468 [402].
[198] Trade Practices Act 1974
(Cth), s 51(1).
[199] Mayfield Development
Corporation Pty Ltd v NSW Ports Operations Hold Co Pty Ltd [2025] FCAFC 43; (2025) 308 FCR
153 at 166-167 [64], quoting Australian Competition and Consumer Commission v
NSW Ports Operations Hold Co Pty Ltd [2023] FCAFC 16; (2023) 296 FCR 364 at 471 [412].
[200] CCA, s 4L.